HUMBERSI DE FIRE AUTHORITY

A G E N D A HUMBERSIDE FIRE AUTHORITY

Tuesday 27 September 2011 10.30 a.m.

Page Primary Business Lead Number Action Requested

A OPEN AGENDA

1. Apologies for absence - Secretary/Director of To record People

2. Declarations of Interest - Secretary/Director of To declare (Members and Officers) People and withdraw if prejudicial

3. Minutes of meeting of the (pages 1-18) Chairperson To Approve Authority held on 24 June 2011

4. Petitions and Deputations in - Secretary/Director of To receive accordance with Rule 13, Part 4 People of the Constitution

5. Communications as Chairperson - Chairperson/ To receive or Secretary may desire to lay Secretary/Director of before the Authority. People

6. Questions by Members (if any) in - Secretary/Director of To receive accordance with Rule 12, Part 4 People of the Constitution

7. Minutes of Committees: - Chairperson To receive and approve (Note: ‘A’ denotes minutes any approved as a correct record by recommend the relevant committee, ‘D’ -ations denotes yet to be approved)

(a) Governance and Standards (pages 19-26) Committee – 6 September 2011 (D)

(b) Policy and Executive (pages 27-34) Committee – 9 September 2011 (D)

(c) Audit, Performance and (to follow) Scrutiny Committee – 20 September 2011 (D)

Page Primary Business Lead Number Action Requested 8. Executive Report (pages 35-40) Chief Fire Officer & Chief To approve Executive

9. 2010/11 Annual Governance (pages 41-70) Audit Commission To approve Report

10. Statement of Accounts 2010/11 (pages 71-156) Director of Finance/ To approve S.151 Officer

11. Financial Outlook for Humberside (pages 157-164) Director of Finance/ To consider Fire Authority 2012/13 Onwards S.151 Officer

12. Strategic Plan 2011-14

12.1 Opportunities for (pages 165-176) Chief Fire Officer/Chief To consider Collaboration between Executive Humberside Fire & Rescue Service and North or South Yorkshire Fire & Rescue Service

12.2 Review of Non-Front Line (pages 177-182) DCO/Director of To consider Service Delivery Operations

12.3 Workstreams – (pages 183-188) Secretary/Director of To consider Transformation/Deinvest People and Director of Corporate Support Finance/S.151 Officer

12.4 IRMP 2011/12 – Small (pages 189-190) Chief Fire Officer/Chief To ratify Fires Unit (SFU) Executive

13. Organisational Development 10 (pages 191-194) Chief Fire Officer/Chief To consider Year Vision Executive

14. Business Continuity – (pages 195-200) DCO/Director of To consider Operational Resilience for Staff Operations Shortages

15. Operations (Incidents of Special (pages 201-216) DCO/Director of To consider Interest) Operations

16. ‘Changing Behaviour to Save (pages 217-224) ACO/Director of Safety To consider Lives’ – Social Marketing and Secretary/Director of Programme People

17. Corporate Risk/Opportunity (pages 225-228) Secretary/Director of To consider Management People

B EXEMPT BUSINESS

Page Primary Business Lead Number Action Requested The Fire Authority is asked to consider excluding the press and public from the meeting during consideration of the following item on the grounds that it is likely to involve the disclosure of exempt information as defined in paragraph 1 of Part 1 of Schedule 12A of the Local Government Act 1972. In making its decision, the Fire Authority is asked to confirm that, having regard to all circumstances, it is satisfied that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

18. Appointment of Chief Fire (to follow) Chair of HFA and To approve Officer/Chief Executive Secretary/Director of People

Agenda Item No. 3 Humberside Fire Authority 24 June 2011

HUMBERSIDE FIRE AUTHORITY

24 JUNE 2011

PRESENT:

Representing East Riding of Yorkshire Council:

Councillors Chapman MBE, Hudson, Ibson, Jefferson JP, Mole, Moore and Skow

Representing Kingston upon Hull City Council:

Councillors Gardiner, Gemmell OBE, Ross and Williams

Representing North Lincolnshire Council:

Councillors Briggs (Chairperson), Waltham and Wells

Representing North East Lincolnshire Council:

Councillors Billard, De Freitas and Hornby

Mrs Clarke (Independent Member of the Governance and Standards Committee) and Mrs Hardy (Independent Member of the Audit, Performance & Scrutiny Committee) attended as observers.

Chief Fire Officer & Chief Executive, Secretary/Director of People, Director of Finance/Section 151 Officer, Assistant Chief Officer/Director of Safety, Head of Operations and Committee Manager were also present.

Apologies for absence were received from Councillors Engall (1.Illness), Glew (3.Constuent Authority commitments), Shipley (3.Constuent Authority commitments), Swift (4.Holiday) and Walker (4.Holiday).

The meeting was held at the Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 10.30 a.m.

3563 DECLARATIONS OF INTEREST - No declarations were made in connection with any of the items to be considered at the meeting.

3564 MINUTES – Resolved – That the minutes of the meeting of the Authority held on 19 April 2011, having been printed and circulated amongst the Members, be taken as read and correctly recorded and be signed by the Chairperson.

3565 MINUTES – Resolved – That the minutes of the Annual General Meeting of the Authority held on 27 May 2011, having been printed and circulated amongst the Members, be taken as read and correctly recorded and be signed by the Chairperson.

3566 PETITIONS AND DEPUTATIONS - The Secretary/Director of People stated that no petitions had been received and no requests for a deputation had been received under Rule 12, Part 4 of the Constitution.

3567 COMMUNICATIONS - The Secretary/Director of People stated that no communications had been received.

3568 QUESTIONS BY MEMBERS - The Secretary/Director of People stated that no questions had been received from Members in accordance with Rule 12, Part 4 of the Constitution.

1 Humberside Fire Authority 24 June 2011

MINUTES OF COMMITTEES:

3569 Governance and Standards Committee - Resolved - That the minutes of the Governance and Standards Committee held on 7 June 2011 be received.

3570 Policy and Executive Committee - Resolved - That the minutes of the Policy and Executive Committee held on 10 June 2011 be received.

3571 Audit, Performance and Scrutiny Committee - Resolved – That the minutes of the Audit, Performance and Scrutiny Committee held on 17 June 2011 be received.

3572 EXECUTIVE REPORT - The Chief Fire Officer & Chief Executive submitted a report updating Members on the following issues.

Fatal Fire – Rosedale Grove, Hull – The report outlined details of an incident on 2 June 2011. The Fire Death and Injury Panel met shortly afterwards and it was likely that the cause of the fire was smoking materials.

Local Resilience Forum - The Local Resilience Forum (LRF) met quarterly and brought together senior managers for all of the local category 1 responders. The aim of the LRF was to ensure that the duties imposed by the Civil Contingencies Act were properly discharged. The Service had always been active participants in the LRF and the Chief Fire Officer & Chief Executive believed that the Service should play a leading role in local resilience in the future. The Chief Fire Officer & Chief Executive had recently been appointed Vice Chairperson of the Forum.

Epworth Fire Station – The report outlined a fire incident on 8 June 2011. The most likely cause of the fire was an electrical fault in the appliance cab and that was subject to further investigation by the Service and the vehicle manufacturer. The Business Interruption Management Team had met on 8 June 2011 to deal with the ramifications of the incident particularly to ensure that fire cover in the Epworth area was maintained. Personnel were to be congratulated for getting the station back on the run by 1800 hours the same day.

A Member referred to reported explosion during the incident and asked what had exploded. The Chief Fire Officer & Chief Executive stated that a breathing apparatus had exploded due to the heat intensity of the fire. A Member asked how old the appliance was. The Chief Fire Officer & Chief Executive stated that the appliance was 2 years old and that the Authority had a second appliance of the same age which upon inspection showed the same evidence of an electrical fault.

Integrated Risk Management Plan (IRMP) 2011/12 - Implementation Update – The report gave a brief overview of the current status of the implementation of the proposals in the IRMP 2011/12:

• Change Crewing Arrangements for All Specialist Appliances to Unit Crewing – Implemented on 16 May 2011. Work was currently underway on a ‘Posting’ Policy which would facilitate staff redeployments as a result of those changes.

• Change Crewing Arrangements of the Command Unit – This vehicle was converted to unit crewing on 16 May 2011 as an interim measure. Further research had commenced on both the alternative crewing options and the vehicle’s normal replacement.

• Flexible Duty System Officers (FDS) Review – There was a separate detailed report regarding this proposal on the Agenda of this meeting (Item No. 15) outlining a reduction in FDS officers from 44 to 36 (Minute 3579 below refers).

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• Reduce the Operational Ridership Factor – This had been completed in two Community Protection Units (CPUs) (North and North East Lincs) and the Authority will work towards implementing this in Hull and East Riding as a consequence of staff reductions over time.

• Review Crewing Arrangements for the Technical Rescue Stations – Further research and consultation had commenced on this proposal particularly around the Working Time Directive and the impact of revised pay arrangements on Pensions. It was envisaged that this proposal could take some time to implement fully.

• Introduce Small Fires Units – This proposal had recently been re-prioritised in order to, hopefully, deploy it during the late summer months or at least have it in place for the busy autumn/bonfire period.

• Strengthen the Resourcing and Management of Operational Risk Information – The human resource implications of this proposal had recently been absorbed into the review work into corporate support services which was scheduled to be reported to the Authority in September 2011.

• Review Retained Duty System (RDS) Contracts to Increase the Availability of Fire Engines – Recent procedural and availability management changes had resulted in a 15% increase in RDS appliance availability from 79.5% in the first quarter of last year to 95.05% in the first quarter of this year. It was hoped that the continuation of this project in its current form would negate the need to re- visit RDS contracts in the short to medium term. In light of the nature of the work responsibility for the progression of this proposal has been passed from the Operations to the People Directorate.

Failure of 13.5m Ladder – West Yorkshire Fire and Rescue Service – The report outlined action taken by the Service following notification that on 5 June 2011 a 13.5m ladder had failed during a training exercise in West Yorkshire. On receipt of guidance from the Chief Fire Officers’ Association (CFOA) and the Chief Fire and Rescue Adviser’s Unit (CFRAU) the Humberside Fire & Rescue Service had ordered an immediate inspection of all 13.5m ladders (28) and imposed limitations on the loading of the ladders. A full inspection programme was initiated and the use of the ladders was limited to emergencies only; all training being suspended until the ladders had received a clean bill of health. By 14 June 2011 all twenty one 13.5m ladders had been inspected by Ladder Workshops and 4 of those had failed to meet the manufacturer’s specification. Those ladders had been removed for repair and the restriction on training had been lifted on the remainder. Other restrictions would remain in place until the cause of the failure had been established.

A Member asked for further information as to the cause of the ladder to fail. The Chief Fire Officer & Chief Executive explained that the ladder was in use during an exercise and would have been subject to considerable load strain with 3 firefighters and 2 water jets on it. A Member referred to the subsequent testing of this Authority’s ladders which resulted in 4 ladders failing to meet the manufacturer’s specification and queried whether there was any other equipment the Authority should be testing. The Chief Fire Officer & Chief Executive stated that the first task was to have all ladders checked which had been done and that the ladder was widely used around the world and that this was the first recorded failure. The Chief Fire Officer & Chief Executive added that all ladders were visually inspected annually and he was not able to explain why the ladder had failed. The Director of Finance/Section 151 Officer stated that the age profile of equipment was being checked and that the outcome of the findings of the investigation in West Yorkshire Fire Service was awaited. The Chief Fire Officer & Chief Executive stated that the use of this type of ladder had been limited to just 1 firefighter at present. A Member asked whether there was

3 Humberside Fire Authority 24 June 2011

budget provision available should it be necessary to replace the ladders. The Director of Finance/Section 151 Officer stated that he would look to use the capital equipment replacement programme if necessary and informed Members that it was the practice whenever a new appliance was bought to ensure that it had new kit on it. The Chairperson asked for a report to be submitted to the next meeting in respect to the procedures in place for checking equipment and stated that there should be strong message from the Authority that the ladders will be replaced where necessary. A Member asked that officers should check whether the specification of the ladders has changed during the twenty years they have been in operation

Humberside Local Enterprise Partnership - It had recently been announced that Ministers were about to approve a Humber-wide Local Enterprise Partnership (LEP) after councils and businesses submitted plans for the new economic body to government. The LEP would comprise Hull City Council, East Riding of Yorkshire Council, North Lincolnshire Council and North East Lincolnshire Council. It is not yet clear what implications the LEP might have for this Authority though any were likely to be positive. As key partners on the four Local Strategic Partnerships HFRS personnel were likely to have a role on the LEP therefore officers would engage with the LEP in order to establish how the Service might best contribute to the local economy. Further updates would be submitted as appropriate.

National Issues: Local Government Resource Review - In March 2011 the Government published the terms of reference for phase 1 of the Local Government Resource Review (LGRR). The purpose of the review was to consider the way in which local authorities were funded, with a view to giving local authorities greater financial autonomy. Phase 1 was due to complete in July 2011 and the Government was committed to implementing reform in 2013-14. Phase 1 was focusing on the relocalisation of business rates which would inevitably lead to changes in the existing formula grant system. The review was primarily aimed at local authorities to provide incentives for promoting economic growth. The impact on Fire and Rescue Services was as yet unknown but Members would be kept informed of progress.

Pay Claim 2011 - The Employers’ side of the NJC had received a pay claim for 2011 seeking a rise in all NJC rates of pay equal to the percentage increase in inflation as identified by the Retail Price Index (RPI) for June 2011 which equated to 5.2%. The Employers’ side had stated that they were unable to offer any pay rise this year as “they want to protect the fire and rescue service and offering a national pay increase at this time would severely compromise that aim.” The Employers’ side of the NJC had however indicated a willingness to undertake joint discussion to see if it could be possible to justify a different position in 2012. A full explanation of the pay claim and Employers’ response had been communicated to all personnel. The Chief Fire Officer & Chief Executive stated that in February 2011 there had been no pay increase for staff subject to the ‘Green Book’ conditions of service. . Awards in H M The Queen’s Birthday Honours List – The Chief Fire Officer & Chief Executive reported orally that Retained Watch Manager John Speak had been awarded an MBE for services to Local Government and that Frank Duffield, recently retired Chief Fire Officer & Chief Executive had been awarded an OBE for services to Local Government.

Future of the Maritime Incident Response Group (MIRG) – The Chief Fire Officer & Chief Executive reported orally, further to Minute 3489, that the Transport Select Committee conducting an inquiry into the Government’s proposals for modernising the Coastguard, including the decision to review arrangements for MIRG which responds to incidents at sea for which firefighting, chemical hazards/and or rescue teams might be required, had recently recommended that MIRG should continue and not be a burden on individual fire authorities. Discussions would now take place

4 Humberside Fire Authority 24 June 2011

regarding the future funding of MIRG and a further report would be submitted when the outcome was known.

Resolved – (a) That the content of the report be noted,

(b) that a report be submitted to the next meeting of the Authority on the procedures for checking equipment and also whether there has been any change in the specification of the ladders, and

(c) that a letter be sent to Mr F Duffield OBE and Mr J Speak MBE congratulating them on their awards in the Queen’s Birthday Honours List.

3573 ANNUAL STATEMENT OF ACCOUNTS 2010/11 - The Director of Finance/ Section 151 Officer submitted a report on the annual Statement of Accounts for 2010/11. A copy of the full unaudited Statement of Accounts for 2010/11 was attached at Appendix 1 to the report. The report highlighted key aspects of revenue and capital outturn for the year. The Accounts covered by the report were subject to audit by the Audit Commission in their role as the Authority’s external auditor. The audited Statement of Accounts must be approved by the Fire Authority by 30 September 2011. At the time of writing the report, one issue that still required clarification by CIPFA and the Audit Commission was the accounting treatment for the New Dimensions assets that were transferred to the Authority from the Department for Communities and Local Government during 2010/11. There were two possible interpretations of accounting treatment: (a) as Donated Assets or (b) by Applying Merger Accounting Principles. After significant debate with the DCLG, the Audit Commission, Sector Treasury and other Fire and Rescue Authorities, a decision to adopt option (a) Donated Assets had been taken. Clarification should be given by CIPFA in due course to deliver a definitive position. This issue was also cited in the Audit Commission’s Progress Report which was considered by the Audit, Performance and Scrutiny Committee on 17 June 2011 (Minute 3545 refers).

The report indicated that, as outlined at the Member Day on 14 June 2011, the underspend on the Authority’s revenue budget for 2010/11 was £2.387m. Previous financial years had seen underspends of £1.429m in 2009/10, £1.836m in 2008/09, £498k in 2007/08 and £1.36m in 2006/07. The full list of variances was set out in more detail in the Foreword to the Statement of Accounts but included areas such as:

Underspends

 Wholetime Firefighter costs - £1.364m - No pay award - No anticipated increase in Employer’s Superannuation contributions - Staff turnover

 Community Fire Safety - Support Staff costs - £261k  Contingency - £400k  Support Services – Support Staff costs - £310k  Hydrants - £197k

Overspends

 Agency staff to cover vacant posts - £104k  Trauma Care Training Course Fees - £110k

Clearly on expenditure of circa £50m there were a number of minor over and under spends but the schedule above aimed to pick out the main headline variances. The

5 Humberside Fire Authority 24 June 2011

Authority’s prudent policy of freezing recruitment across the Service had contributed to the pay underspends combined with the blanket freeze on pay awards throughout the public sector.

The outturn for the Capital Programme showed a spend of £3.340m against an allocation of £4.843m. Reasons for the outturn were as follows:

 Estates (Hornsea, Pocklington, Snaith, Waltham, Immingham West, Workshops, Service Headquarters) - These schemes will complete in 2011/12

 Vehicles (Fire Engines/Light Vehicles) - Completion and delivery early in 2011/12 (Fire Engines now delivered early June)

 Plant and Equipment (IT and Equipment) - Some of these schemes have slipped into 2011/12.

In line with good practice, it was proposed that the following allocations were therefore re- phased into 2011/12:

 Hornsea Refurbishment - £247k  Pocklington Refurbishment - £189k  Snaith Refurbishment - £215k  Waltham Refurbishment - £132k  Immingham West – CFBTU - £175k  Service HQ improvement works - £205k  Heavy Vehicles - £407k  Light Vehicles - £55k  IT improvements inc Gazetteer - £285k  Resource Management System - £150k  Operational Equipment - £59k  Water Rescue Equipment - £56k

Table 1 below shows the overall position on Reserves at 31 March 2011 and some recommended movements in reserves to be effected from 1 April 2011.

Table 1 - Summary Reserves 31 March 2011 and 1 April 2011

£m £m £m 31 March Proposed 1 April Notes 2011 Movements 2011

General Reserve 5.616 (0.680) 4.936

Earmarked Reserves

RDS Equal Pay Case 0.350 0 0.350 Costs anticipated during 2011/12 Insurance Reserve 0.400 0 0.400 No change

Control Reserve 0.300 0.200 0.500 Addition to meet potential infrastructure requirements

6 Humberside Fire Authority 24 June 2011

Property Maintenance 0.500 0 0.500 No change Reserve Water Rescue 0.200 0 0.200 No change Equipment Reserve Change Management 2.500 0 2.500 No change BA Replacement 0 0.700 0.700 Created to Reserve supplement the current allocation to allow a full changeout FRSS Costs 2010/11 0.120 (0.120) 0 Retirements completed 31/3/2011 Peaks Lane R 0.100 (0.100) 0 Scheme complete

Total Revenue Reserves 10.086 0 10.086

Table 1 above shows overall revenue reserves of £10.086m at 31 March 2011. Revenue reserves at 31 March 2010 stood at £7.592m. The increase in reserves year-on-year was beneficial to the Fire Authority on a number of levels but in particular:

 Additional reserves give the Authority some protection in the face of major financial uncertainties, e.g. the latter 2 years of CSR10 are expected to create an extremely challenging financial environment due to the back loading of Fire and Rescue Service grant reductions.

It was proposed, in order to assist the prudent management of the Authority’s finances, to create or supplement the following earmarked reserves as set out in Table 1 above:

 Breathing Apparatus Replacement - £700k – as an addition to the existing capital allocation of £300k.

 Control - £200k – to assist with further likely investment in infrastructure

A Member referred to the refurbishment at Peaks Lane Fire Station and stated that an issue had come to light during the carrying out of that scheme regarding the electricity supply for the mobile phone mast located on the property. The Director of Finance/ Section 151 Officer stated that he would check the matter and report to the next meeting. A Member commented that the accounts showed an underspend for the fifth consecutive year and suggested that continual underspends might be an indication of incorrect budgeting. The Director of Finance/Section 151 Officer confirmed that the Authority had a history of underspend; indicated that in 2010/11 the underspend arose because some vacancies were frozen, and stated that generally the slippage sat within the capital programme. A Member congratulated the Finance Manager and his staff for producing such a clear and easily understandable set of accounts. A Member sought clarification regarding the use of Agency staff. The Director of Finance/Section 151 Officer stated that Agency staff were mostly used for IT support where the work tended to be of a very technical nature and as a temporary measure.

Resolved - (a) That Members take assurance from the accounts presented and that a copy signed by the Director of Finance/Section151 Officer be presented for audit;

(b) that Members approve the Capital Programme ‘slippage’ at paragraph 11 of the report, and

(c) that Members approve the position on Reserves as at 1 April 2011.

7 Humberside Fire Authority 24 June 2011

3574 TREASURY MANAGEMENT ANNUAL REPORT 2010/11 - The Director of Finance/ Section 151 Officer submitted a report providing a review of the Authority’s Treasury Management activity and Prudential Indicators for the year 2010/11 in line with the Chartered Institute of Public Finance and Accountancy (CIFPA) Code of Practice 2009. The report showed full compliance with the Authority’s Prudential Indicators for 2010/11 and an investment return rate above the benchmark rate. Appendix 1 detailed the agreed Prudential Indicators for 2010/11 and the actual figures for 2010/11. During the financial year the Authority operated wholly within the limits approved. The report stated that the Section 151 Officer considered that the current capital programme to be affordable and sustainable with the revenue effects of capital investment built into the Medium-Term Financial Plan. Through the Service and Finance Planning Process, the Authority had aligned its resources to key strategic priorities. With regard to Treasury Management the report indicated that external debt was currently £6.4m below the agreed operational limit for 2010/11 and the maturity structure for both borrowing and investments remained within the approved upper and lower limits. Subsequent borrowing or re-scheduling during 2011/12 would take in to account prevailing interest rates on offer from the Public Works Loans Board, the current maturity structure of loans, balanced with the need to reduce capital risk by keeping down cash- balances. The report had been considered by the Audit, Performance and Scrutiny Committee at its meeting on 17 June 2011 (Minute 3553 refers).

Resolved - That Members approve the Treasury Management activities undertaken during 2010/11 and the Prudential Indicators as outlined in paragraphs 17 to 20 and detailed in Appendix 1 to the report.

3575 MANAGEMENT ACCOUNTS TO 31 MAY 2011 - The Director of Finance/ Section 151 Officer submitted a report on the Authority’s Management Accounts and Prudential Indicators for the period ending 31 May 2011. A copy of the accounts was attached to the report. The summary estimated outturn position was as follows:

 Revenue Budget - £ 205k underspend;  Capital Programme - £ 4.14m total expenditure;  Pensions Account - £ 7.07m deficit

Resolved – That Members approve the Authority’s financial position for the period ending 31 May 2011.

3576 FIRE FUTURES – GOVERNMENT RESPONSE – The Chief Fire Officer & Chief Executive submitted a report on the Government’s response to the Fire Futures Review which had commenced shortly after the Coalition Government took office in May 2010. The Fire Futures review commenced shortly after the Coalition Government took office in May 2010 and consisted of four work streams led by experienced members of the Fire and Rescue Sector. The four work steams reported in December 2010 and in April 2011 the Government responded to the reports. The full report was attached at Appendix 1 to the report now submitted. The report consisted of a statement of intent by the Government which started to outline the relationship between the Government and the Fire and Rescue Service, followed by a four category Annex which summarised the Government’s view of the Fire Futures report. The categories were:

 Category A - An “Ideas Bank” the sector may want to draw on.

 Category B - National Resilience – sector in the lead, supported by Government.

 Category C - Government action to free the sector.

 Category D - Ideas the Government has ruled out.

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The body of the report clearly stated the Government’s intent to reduce central control of the Fire and Rescue Service so that the Service can focus on local communities. This meant that the Service must be transparent and locally accountable to the communities it serves. The Government did however recognise that whilst the Fire and Rescue Service was held in high esteem by the public they had a low awareness and understanding of what the Service spends money on and the wider role of the Service, particularly in areas of such as prevention and protection. It was acknowledged that the Fire and Rescue Service had started to raise the level of understanding and had made a national commitment to driving service improvement which would be a key to making decentralisation a reality for the Fire and Rescue Service. To articulate that change in relationship and to build on some of the thinking in Fire Futures the Government intended to publish a new National Framework in 2012. Whilst it is in an early stage of development it was stated that the National Framework will include:

 Citizen’s rights and expectations  The role of citizens in decision making  A focus on community needs  Provision of transparency, assurance and information to communities  Local and national resilience  Multi-agency and cross-border interoperability.

The report reiterated that Fire and Rescue Service decisions on priorities and spending should be made locally and that the Service should be more open to competition perhaps from other providers or from the development of mutuals by Fire and Rescue Service staff. The report also proposed that the Fire and Rescue Service should use their staff resources to take on other local service roles, make better use of its assets and consider collaboration with others such as Ambulance Trusts. Fire and Rescue Services were reminded that they should consider the seven areas outlined in the Fire Minister’s letter of 20 October 2010 which were:

 Flexible staffing arrangements  Improved sickness management  Pay restraint and recruitment freezes  Shared services/back office functions  Improved procurement  Sharing chief officers and other senior staff  Voluntary amalgamations between Fire and Rescue Authorities.

The report indicated that Members should take comfort that the Corporate Management Team had anticipated many of the issues raised in the Fire Futures response thus Humberside Fire and Rescue Service was well placed to meet the expectations of the Government. The Corporate Management Team recognised Fire Futures as being an opportunity to set a firm direction for Humberside Fire and Rescue Service without being directed by Government. The Strategic Plan and Integrated Risk Management Plan approved in March 2011 provided an excellent springboard for Service improvement that would be carried forward consistently for the next 5 – 10 years. Whilst funding would continue to be a challenge, the report suggested that Members should be confident that the ambitions of Government laid down in Fire Futures lay well within the capability of Humberside Fire Authority.

RESOLVED - That the report be noted.

3577 FINANCIAL AND HUMAN RESOURCE PLANNING 2011/12 – The Director of Finance/Section151 Officer and Secretary/Director of People submitted a report updating Members on the latest financial position of the Authority. As a result it also outlined the fact that a formal voluntary and/or compulsory redundancy scheme would not be required during

9 Humberside Fire Authority 24 June 2011

2011/12. The position would however be kept under continuous review and again formally reviewed at the beginning of 2012/13.

Members had received a number of reports over the last 18 months that had centred on the Authority’s financial position over the medium-term. The most recent of those was submitted to Members on 25 March 2011 and set out the Authority’s Medium-Term Financial Plan (MTFP) for 2011/12 to 2014/15. That report captured the financial impact of the decisions taken by the Authority on 4 March 2011 regarding the Strategic Plan 2011-14 and the Integrated Risk Management Plan (IRMP) for 2011/12. Efficiencies of £4.4m were delivered by the IRMP decisions of 4 March and those had made a significant contribution to balancing the MTFP. Other efficiencies had also contributed to the balancing of the MTFP, namely senior management savings (£290k), discretionary expenditure savings (£260k) and through the freezing of recruitment.

The Authority had consistently stated that it saw redundancy (either voluntary or compulsory) as the very last resort and that all other possible measures would be examined prior to embarking on such a course of action. The key question had always been whether the Authority could reduce staffing through natural wastage and retirement at a speed sufficient to meet the financial profile. The reports to Members on 14 February and 25 March 2011 stated that in the order of £1.2m would need to be removed from the revenue budget in 2011/12 in order to balance the budget for 2012/13. That had now been updated following further review and the current position suggested that a figure closer to £750k would need to be removed in 2011/12 to allow the balancing of the 2012/13 budget. As a measure that would be met by circa 20 retirements during 2011/12 (i.e. before 31 March 2012). The financial profile prudently assumed that there would be no retirements during 2011/12 and therefore no benefit to the budget for 2012/13 was assumed. That stance was adopted on the basis that staff close to retirement would often delay their decision to retire during times of organisational change. However, so far in 2011/12 7 employees had retired or tendered their resignation in order to retire. There remained a further 34 employees eligible to retire before 31 March 2012. On that basis, it was felt that the Authority should be able to balance its budget for 2012/13 without recourse to a redundancy scheme (voluntary or otherwise). Should there be a modest shortfall, then the Authority could deploy a one-off element of the General Reserve. The overall position on reserves was sound and therefore it had scope to contribute, if required, given that its level was slightly in excess of the Prudent Minimum General Reserve (PMGR) agreed by Members in September 2010. This managed approach gave the Authority’s employees some certainty for the next 12 months but an annual review would be required until the Authority’s financial environment stabilises and the outcome of years 3 and 4 of the current Comprehensive Spending Review (CSR) (2013/14 and 2014/15) and the Government’s Resource Review were known.

Resolved - That Members note the report and take assurance from the Authority’s current position with regard to financial and human resource planning.

3578 OPPORTUNITIES FOR COLLABORATION BETWEEN HUMBERSIDE FIRE AND RESCUE SERVICE AND NORTH OR SOUTH YORKSHIRE FIRE AND RESCUE SERVICE - The Chief Fire Officer & Chief Executive submitted a report reminding Members that the Authority’s Strategic Plan 2011-14 approved in March 2011 outlined a number of research workstreams which would aim to identify how the Service might better use its resources to deliver more efficient services. That work included options such as full mergers with other Services, shared management teams and shared or outsourced support services. All of those initiatives had subsequently been echoed in the Government’s response to Fire Futures and in a letter from the Fire Minister. Members were reminded that from 2004 up to its dissolution in 2010 the Regional Management Board was the main forum for collaboration between the four FRAs in the Yorkshire and Humber region. Dissolution of the RMB enabled consideration to be given to collaboration with a wider range of potential partners in various areas of work. To that end discussions had taken place with all neighbouring Fire and Rescue Services and with Unitary Authority Chief Executives. Whilst there was some

10 Humberside Fire Authority 24 June 2011 potential for partnership or outsourcing work to the Unitary Authorities there was little commonality of purpose with those bodies and that would likely have led to a commissioner/provider relationship rather than a true partnership. Whilst that type of relationship had been successful in delivering generic functions such as payroll the Unitary Authorities would be less likely to be able to deliver services specific to fire and rescue. Because of that officers had made the decision to focus, in the first instance on seeking a fire and rescue partner. The discussions with South Yorkshire and Lincolnshire indicated that the time and conditions were not right for closer collaborative working and as a consequence of those discussions the Chief Fire Officers of Humberside Fire and Rescue Service and North Yorkshire Fire and Rescue Service had since met to discuss the potential for closer collaboration. During those discussions a number of common factors were identified that would provide a solid foundation on which to build a partnership. Those factors were:

 Governance Model (Combined Fire Authority)  Rural and urban mix  Similar strategic objectives  The need for efficiencies  Mutual respect

Both parties therefore agreed to explore the potential of adopting a “preferred partnership” arrangement meaning that Humberside Fire and Rescue Service would look to North Yorkshire Fire and Rescue Service in the first instance before entering into any collaboration or partnership arrangement with other authorities or providers and vice versa. That arrangement would not however preclude partnerships with other organisations. To progress that approach Humberside Fire and Rescue Service and North Yorkshire Fire and Rescue Service had formed a Joint Programme Board to scope out and evaluate the potential for collaboration in the following areas of activity:

 Control Room/Mobilisation  Operations and service delivery (specifically operational policy, procedures and training)  Technical Services  Community Safety  Human Resources  Corporate Communications and Engagement  Governance/Monitoring Officer/Legal  Payroll and Pensions

The above list was not exhaustive but it was of note that the majority of opportunities lay in the support functions which might lead to service improvements and/or management efficiencies, particularly in those areas. The scoping work would take place over the summer and the results of that work would be brought before Members in September 2011.

Members were reminded that in March 2010 the Chairperson of North Yorkshire Fire Authority approached the Chairperson of Humberside Fire Authority with a proposal to consider forming a shared management team which could potentially serve both authorities at a lower cost than existing arrangements. That proposal was put before Members in April 2010 who, having regard for the volume and complexity of work then in hand, chose to defer the proposal for 12 months. As 12 months had passed since the Fire Authority decision the Chief Fire Officers considered that it was timely to revisit the subject of senior management efficiencies, particularly in the light of the collaborative work now being discussed. The Chief Fire Officers agreed that from a practical perspective it might be possible to move to a shared management team within two to three years but that such a proposal would require the allocation of significant time and energy to ensure that any such arrangement met the needs of both Authorities. They further agreed that such a proposal would require a firm mandate from both Authorities. The initial scoping exercise had indicated that a full merger

11 Humberside Fire Authority 24 June 2011 of Services would be unlikely to meet the diverse needs of both Authorities and that there was insufficient senior management capacity to undertake the comprehensive feasibility study essential to the success of such a radical proposal. The implication of that was that full merger was not a short-term option.

Since commencing discussions with North Yorkshire Fire and Rescue Service the Secretary to the Humberside Fire Authority had received a letter from the Clerk and Treasurer of South Yorkshire Fire and Rescue Service, attached at Appendix 1 to the report. South Yorkshire Fire and Rescue Service were in a similar situation to Humberside Fire and Rescue Service in that they had not permanently appointed a Chief Fire Officer following the retirement of the previous incumbent. The letter invited Humberside Fire and Rescue Service to discuss options for sharing Chief Fire Officers or Chief Executives, integrated management or more formal collaboration between the two Authorities. The current scoping work with North Yorkshire Fire and Rescue Service referred to above required a significant amount of corporate management capacity and was likely to continue to do so for some time. Whilst it was possible to achieve that and deliver existing priorities duplication of that work with South Yorkshire Fire and Rescue Service could not be achieved simultaneously. South Yorkshire Fire and Rescue Service were working to a tight timescale, hoping to deliver an initial report to their Authority by June or July 2011. Bearing that timescale in mind and the possible benefits of collaboration with South Yorkshire Members were asked to permit officers to meet with South Yorkshire colleagues to quickly establish if the South Yorkshire option had the potential to yield measurable benefits. Such an approach would be within the terms of the “preferred partnership” with North Yorkshire.

Whilst there were likely to be significant benefits to be gained from working in partnership with North or South Yorkshire there would need to be assurance that certain conditions were met and in due course Members might wish to consider some parameters for any collaborative agreement. Examples of those parameters might be the retention of an identifiable ‘Humberside Fire and Rescue Service’, self determination or ‘sovereignty’ through appropriate governance structures (including a Chief Fire Officer) and no compromise of operational service delivery and response standards. The Authority could, in that way, be assured that Humberside Fire and Rescue Service would only enter into partnerships or management arrangements that showed clear benefits for all participants whilst retaining the ability of its Members to be free to respond to the needs of their communities.

Resolved - That Members approve the following recommendations:

(i) Continued development of the “preferred partnership” approach with North Yorkshire Fire and Rescue Service;

(ii) on a ‘no-commitment’ basis, continued exploration of a number of collaborative opportunities (detailed in paragraph 14 of the report) with North and South Yorkshire Fire and Rescue Services, and

(iii) the presentation of a report to this Authority in September 2011 detailing progress of recommendations (i) and (ii) above.

3579 IRMP 2011/12 PROPOSAL NO.3: REVIEW OF THE FLEXIBLE DUTY SYSTEM - The Assistant Chief Officer/Director of Safety presented a report by the Deputy Chief Officer/Director of Operations reminding Members that at the Fire Authority held on 4 March 2011 Members considered a number of Strategic Planning proposals, and required that this IRMP proposal was subject to further engagement with staff and their representatives before being re-presented to the Authority for approval. The report now submitted outlined the background regarding the review of the current arrangements around the Flexible Duty System (FDS) and included details of the staff engagement and consultation with Representative Bodies.

12 Humberside Fire Authority 24 June 2011

The current FDS was in place to provide operational incident response from Officers and was based upon them providing that cover within a geographical response footprint. This was introduced during the last review of the system in 2004, which resulted in the number of Officers being reduced from 64 to the current level of 44. The cover areas were currently based on 20 minute travel time foot prints and some specialist skill sets, although findings from neighbouring and some other similar size Fire and Rescue Services showed that the methodology of dictating travel time boundaries was not always used. The provision of a time based footprint further placed a degree of restriction on officer movement to attend meetings and other such managerial requirements. A more appropriate approach would be to base provision on ensuring appropriate supervisory command capacity across the Service area commensurate with normal operational activity, and to ensure that the correct roles and specialists are available at all times. The review had been based upon operational command requirements and specialist Officer capacity and did not consider the management functions within the Service that FDS managers currently provide. Those management functions would be considered in a wider review of non-frontline uniformed staff and corporate support services (as part of the Services Strategic Plan 2011-14) which would be reported to the Authority in September 2011. Capacity for specialist roles was a key area to consider. Humberside FRS provided a significant contribution to the National Resilience arrangements, through the Detection, Identification, Monitoring (DIM) of hazardous materials capability. The national model required each FRS to have a minimum of three DIM Officers on duty at any one time. Similarly the Service’s commitment to Regional Fire Investigation required specific specialist FDS officers to support both local and regional requirements.

The review had based optimum requirements around the spans of control for the level of responsibility as detailed within Fire Service Manual Incident Command 3rd Edition. Officer mobilising triggers were determined by incident size, based around the number of pumping appliances present at an incident. That would continue to be the trigger for role related FDS mobilising. The proposal being to use the thresholds detailed below for roles of Incident Commander and Operational Tactical Advisor:

Table 1

Role of Incident Mobilising Trigger for Operational Commander Tactical Advisor

Up to 3 Pumps - WM 3 Pumps – minimum FDS SM mobilised Up to 5 Pumps - SM 5 Pumps – minimum FDS GM mobilised 6 to 8 Pumps - GM 8 Pumps – minimum FDS AM Mobilised 9 Pumps and above PO informed

The review had identified a number of FDS functional roles, which would underpin the Service’s approach to incident management and operational assurance, as detailed below:

 Incident Commander  Operational Tactical Adviser  Audit Officer  Specialist Roles

The functional role of Operational Tactical Adviser formed an outcome of related work around improving operational assurance and the Service’s approaches to incident commander development and support. Through analysis of incident activity across all incident sizes the review had proposed a reduction in FDS numbers from 44 to 36 and a move away from geographical cover groups to groups based around function and role. All FDS Officers would be available to take command of incidents in line with the Table 1 above,

13 Humberside Fire Authority 24 June 2011 with the nearest Officer, of at least the role required, being mobilised. The revised cover structure would ensure that there would be nine FDS managers on call at any one time across all managerial levels (1 Area Manager, 3 Group Managers and 5 Station Managers) to respond to operational incidents. Equally, unlike currently, there would be a relative balance of Area, Group and Station Managers across each cover group. The proposed functional groups (including possible roles for day duty Watch Managers) were shown in Appendix 1 to the report. Whilst moving away from small geographical cover areas there was still an even spread of Officer locations across the Service area, and attendance times were in line with the Service procedures for major incidents. Any future FDS appointments would be managed to ensure that remained the case. It had also been proposed to attach a specialist role to each FDS Officer post to ensure Service resilience is maintained. The assigned specialist post would, where possible, have relevance to that manager’s day duty role and would form part of his/her role description. Previously not all FDS Officers undertook a specialist role, in addition to their incident command role, although all Officers received the same pay.

It was acknowledged that by reducing the number of FDS posts resilience might be affected, as would the capacity to fulfil all identified specialist roles to the minimum requirements needed to meet local, regional and national needs. To address this it was proposed to explore appropriate duty options to enable day duty Watch Manager roles to undertake some identified specialist/functional roles, such as DIM. This approach might also support other IRMP related work such as the review of Command Unit crewing arrangements. Resilience would be managed with the arrangements currently in place to recall FDS Officers to duty if needed, although it was highly unlikely this would be used apart from in exceptional circumstances. Sickness levels had been taken into account and resilience could be maintained by utilising staff not currently providing FDS cover if needed. FDS Officers only take annual leave when they are able to arrange for other Officers to provide operational cover on their behalf, and therefore leave would not affect resilience. If approved there would be a need for a small number of individuals to change their existing rota and cover groups, that needs to occur ideally prior to the start of a new leave year (1 January), and due to leave booking arrangements, revised rota groups must be in place not later than 30th November. The move from 44 to 36 would be managed via a staged process of reduction, facilitated by normal retirements, that would enable any required specialist training to be delivered to Officers and would be expected to be fully in place by November 2012. The current position in terms of numbers of FDS Officers is shown in Table 2 below. The move to the numbers proposed would be made easier due to the fact that there were several temporary staff in place at present who would revert to their existing non FDS roles.

Table 2

FDS staff only Existing Proposed Reduction establishment establishment Area Managers 4 4 0 Group Managers 14 12 -2 Station Managers 26 20 -6 44 36 -8

Resolved – That, in that further engagement with staff and Representative Bodies has been undertaken, Members approve a reduction of FDS Officer posts from 44 to 36 in line with IRMP Proposal 3.

(Councillors Billard, Gardiner, Gemmell and Moore were recorded as voting against the above decision).

14 Humberside Fire Authority 24 June 2011

3580 ORGANISATIONAL DEVELOPMENT - The Secretary/Director of People submitted a report setting out a fresh and more focused approach to future strategic/organisational development. The Report was considered by the Policy and Executive Committee on 10 June 2011 (Minute 3531 refers), but given the role of the full Fire Authority, all Members should be aware of a changed approach to organisational development. The Chart attached at Appendix 1 to the report outlined how future strategic/organisational development would be undertaken, providing clear mechanisms for meaningful engagement and consultation. One of the key features of the approach was to develop a vision/picture of the organisation over a longer time period, i.e. 5 to 10 years, and perhaps beyond. That more detailed vision would shape the organisation. The report indicated that Members would see their role in terms of shaping that vision and providing political leadership. The Fire Authority also approved the Strategic Plan and Integrated Risk Management Plan (IRMP).

Traditionally, the Service had developed three year strategic plans (and IRMPs), which had tended to be project led. Whilst there had been strategic thinking, that perhaps had not been so well developed and had also not considered the longer-term. A clear structure had not existed to enable organisational development. The approach set out in Appendix 1 to the report would bring some shape and clarity to future organisational development. In particular it set out the role of the Corporate Management Team (CMT) and how a vision/picture would be developed, with the use of a ‘Sounding Board’, focus groups and the involvement and support of the Fire Authority. It is from this vision which informs a strategic/organisational plan, which would result in a number of workstreams/projects to enable the plan to be achieved through the internal governance structure. It was the strategic/organisational plan which would also then go to formal consultation. The work of the Boards and the Directorates would be aligned to the plan. The approach set out in Appendix 1 would evolve over time, but it was important that all staff (and public) understand how the organisation would develop and the opportunities for engagement and consultation. It was designed to capture in broad terms organisational development. The Policy and Executive Committee on 10 June 2011 had received a separate paper in respect to the internal governance structures (Boards) and both papers taken together demonstrated a fresh approach going forward. Currently the Chief Fire Officer & Chief Executive and CMT were beginning to develop a longer term vision. As such, Members could begin to expect to see discussion around that longer term (10 years) vision/picture and the creation of the Sounding Board which would help to shape that vision.

Resolved - .That Members note the report and take an assurance from the outlined approach to future organisational development

3581 ANNUAL PERFORMANCE REPORT 2010/11 - The Chief Fire Officer & Chief Executive submitted a report indicating that following the announcement to disband the Audit Commission and the abolition of the Comprehensive Area Assessment Framework, by the Coalition Government, there remained uncertainty regarding the future framework to monitor the performance and efficiency of fire and rescue authorities (FRAs). Work continued through the Chief Fire Officers’ Association (CFOA), to develop a sector led improvement framework, which had previously been reported to Members. In addition, there was currently consultation from the Department for Communities and Local Government (DCLG) regarding proposals for the future framework for audit of local public bodies, including FRAs. Despite a number of changes to centralised audit processes in recent years, in line with best practice the Humberside Fire Authority had continued to produce an Annual Performance Report. The draft Annual Performance Report 2010/11attached to the report now submitted provided an overview of Service performance around the themed areas of: Prevention and Protection; Emergency Response; and Corporate Health, including financial information. Key highlights of the draft Annual Performance Report were summarised on pages four and five of the attached report. The Annual Performance Report would be submitted to the Fire Authority on 24 June 2011 for approval. The report had been submitted for scrutiny by the Audit, Performance and Scrutiny Committee on 17 June 2011 (Minute 3556 refers).

15 Humberside Fire Authority 24 June 2011

A Member asked whether the Service had done anything in relation to the high incidence of migrant workers residing in Houses in Multiple Occupation (HMOs). The Assistant Chief Officer/Director of Safety acknowledged that there had been an increase of migrant workers in Hull and Goole and stated that the Service worked closely with the Humber Cohesion Group to identify the extent of the challenge facing the Service, and that that had led to the establishment of working groups in each of the Community Protection Units to focus on migrant workers. The Assistant Chief Officer/Director of Safety confirmed that the Service did engage with Social Landlords regarding safety in HMOs. A Member referred to the section of the report dealing with sickness absence and stated that as firefighters would lose their CPD payment if they were absent for a long period there was a possibility that staff would attend for work when they were still ill and suggested that regard should be head to the illness record over their career lifetime. The Chief Fire Officer & Chief Executive stated that some years ago the sickness record was poor but had now improved significantly and explained that the CPD Scheme looked at the impact of an individual’s absence on the efficiency of the Service and was a scientific nationally agreed scheme. The Chief Fire Officer & Chief Executive stated that there was an appeals process under the CPD Scheme to ensure that all factors were taken into account. A Member sought clarification regarding the figure relating to accidental fires. The Assistant Chief Officer/Director of Safety undertook to supply the Member with a more detailed breakdown of the statistics relating to accidental fires.

Resolved – That Members approve for publication the Annual Performance Report for 2010/11.

3582 OPERATIONS RESPONSE (INCIDENTS OF SPECIAL INTEREST) – The Head of Operations presented a report by the Deputy Chief Officer/Director of Operations outlining details of incidents of special interest for the last quarter as set out in Appendix 1 to the report. The performance of the Directorate in respect of response standards had been reported to the Audit, Performance and Scrutiny Committee.

Resolved - That Members note the contents of the report as a quarterly update of incidents of special interest.

3583 FIRE AUTHORITY AND COMMITTEE WORKSTREAMS 2010/11 - The Chief Fire Officer & Chief Executive and Secretary/ Director of People submitted a report indicating that following a review of its corporate governance, the Authority in May 2008 had adopted a Constitution and a new committee structure. It was agreed that the first meeting of each Committee in a new cycle should receive a report which outlined broadly the substantive reports that Members, as a minimum, could expect to receive during 2011/12. The intention behind the Committee workstreams for 2011/12 is to provide Members with a broad indication of the reports that they could expect to receive during the year. That would also enable forward planning for the Corporate Management Team and at the same time provide an early indication to the Audit, Performance and Scrutiny Committee in respect to areas for its review and scrutiny (in respect to Policy and Executive Committee). The workstreams set down were not exclusive or exhaustive. There were also standing reports to certain Committees. There was nothing to prevent Members from requesting additional Agenda items in the normal way. In addition, the corporate risk/opportunity register would continue to inform the agenda of meetings. The agreed workstreams for the Policy and Executive, Audit, Performance and Scrutiny, and the Governance and Standards Committees for 2011/12 were set out in Appendix 1 to the report. It was important that the Authority took an overview of the forward plans of each Committee and satisfied itself that the Committees discharged their respective functions effectively and in accordance with the Constitution, which would enable Members to further see how the Committees dovetailed their complementary roles and responsibilities. Each Committee would produce an annual report to the April 2012 Fire Authority meeting, which would include progress against the agreed workstreams.

16 Humberside Fire Authority 24 June 2011

With regard to the workstreams of the full Fire Authority, then essentially those were set down in Article 4 of the Constitution. In terms of 2011/12, the Authority undoubtedly would be concentrating upon the development of a longer term picture/vision for the Service, along with the Comprehensive Spending Review (CSR) position years 3 and 4. There were a number of key Strategic Plan 2011/14 workstreams and the appointment of a Chief Fire Officer/Chief Executive. A third review of corporate governance would also be considered.

Resolved – That the Fire Authority confirms the workstreams of its Committees.

3584 STRATEGIC RISK REGISTER - The Secretary/Director of People reported orally that the Corporate Management Team was reviewing the current structure of Corporate Risk/Opportunity Management following the move from a Directorate to a Board structure. The Fire Authority would receive Corporate Risks in a new Strategic Risk Register and other cross Board high level risks would go before the appropriate Board. Edition 7 of the Register was still in existence. The changes in reporting were all to do with ownership of the risk/opportunity.

Resolved – That the report be noted.

Meeting closed at 12.00noon

17 Humberside Fire Authority 24 June 2011

18

Agenda Item No. 7(a) Governance & Standards Committee 6 September 2011

HUMBERSIDE FIRE AUTHORITY

GOVERNANCE AND STANDARDS COMMITTEE

6 SEPTEMBER 2011

PRESENT: Mrs J Clarke (Chairperson), Councillors Glew, Jefferson J.P., Skow and Williams and Mr R Dixon, Mr D Hughes and Mr J Jepson.

Councillor Briggs and Mrs G Hardy (Independent Member of the Audit, Performance & Scrutiny Committee) attended as observers.

Chief Fire Officer and Chief Executive, Deputy Chief Officer/Director of Operations, Secretary/Director of People and Committee Manager were also present.

The meeting was held at Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 10.30 a.m.

(Prior to the meeting the Independent Members of the Committee met in private)

3585 DECLARATIONS OF INTEREST – Councillor Briggs stated that whilst he was attending this meeting only as an observer he would nevertheless withdraw from the meeting for the consideration of Agenda Item 16 (Allegation of Breach of Member Code).

Mrs J Clarke declared an interest in Agenda Item 5 (Localism Bill – Update) insofar as it referred to a possible extension of her appointment as an Independent Member of this Committee and stated that she would withdraw during the discussion of that aspect of the report if the Committee felt such action was necessary.

3586 MINUTES – Resolved – That the minutes of the Committee held on 7 June 2011 be approved as a correct record and signed by the Chairperson.

3587 LOCALISM BILL – UPDATE - The Secretary/Director of People submitted a report, further to Minute 3516 providing a further update and broader reminder of the main provisions of the Localism Bill which related to the governance of the Authority. The report outlined the progress of the Bill through Parliament and indicated that it was still likely that the Bill would receive Royal Assent towards the end of the year or in early 2012. Members were informed that a published plain English guide to the Localism Bill was available. In terms of the debates in the House of Lords regarding the proposed abolition of the current Standards regime, there was no mention of changes/proposed amendments. There were however reservations around the right to challenge, but those were yet to materialise into substantive amendments. Therefore the current Standards regime would soon come to an end, with transitional arrangements expected in the autumn. To that end it would be necessary as part of the Third Review of Corporate Governance, as highlighted at previous meetings, to consider the future role of this Committee and its membership. In addition, as the Committee was aware the current Chairperson (Mrs Clarke) had been due to retire as an Independent Member in April 2011. However, given the Localism Bill, the Fire Authority decided in 2010 that rather than recruiting a new Independent Member, it would wait to see how the Localism Bill progressed and whether the Standards regime would be abolished. The Authority agreed to extend the office of Mrs Clarke given these exceptional circumstances, to be reviewed in six months. Given that the abolition of the Standards regime looked certain later in the year but that there remained a need to see how complaints of misconduct were to be handled thereafter, and also that the review of the Committee structure was to take place in any event, it was suggested that it might be prudent to report to the Authority in September 2011 and extend Mrs Clarke’s period of office until the Authority year (April 2012).

(The Committee indicated that they were content to discuss the suggested extension of the Chairperson’s period of office without the need for Mrs Clarke to leave the meeting.) 19

Governance & Standards Committee 6 September 2011

Members were reminded that the Localism Bill contained the proposed Community Right to Challenge and advised that that part of the report should be read in conjunction with the separate report on the Agenda for this meeting in respect to the White Paper, Opening up Public Services (Minute 3589 below refers). Given the role of the Governance and Standards Committee, the report set out a brief reminder of the provisions around the Right to Challenge which would enable a voluntary body, community group, charity or social enterprise to express an interest in running a local service. It was intended that that would encourage greater diversity of service provision, reduce costs, and encourage innovation and responsiveness. The Right would apply to all “relevant services” provided by “relevant authorities”. “Relevant authorities” would include local councils and such other bodies as the Secretary of Stage may specify. “Relevant services” would include services provided by, or on behalf of, the local authority in the exercise of any of its functions, other than a service which was specifically excluded in regulations made by the Secretary of State. Whilst Fire and Rescue Authorities (FRAs) were not currently included in the description of “relevant authorities”, those fire and rescue services which were part of county councils would be included. The Government had therefore consulted on extending the description to include all FRAs (i.e. including combined FRAs), in the interests of national consistency. If a combined FRA was to be subject to the Right, the question would then arise as to which of its services would be regarded as “relevant services”. The recent Government consultation suggested that that would not include core activities including fire fighting and responding to road traffic accidents. However, on the face of the consultation responses, that would leave some areas of service provision that could potentially be subject to the Right, for example, training. However, even in those cases it would be open to the FRA to set a window of time during which it was prepared to consider any expressions of interest received, and not consider any submissions received outside of that period. The mere receipt of a submission would not bind a FRA, which would be free to accept or reject it. The position on Community Right to Challenge would become clear, however, Members were advised to read across the clear intention of opening up public services in the recent White Paper. To that end, it was likely that only front-line firefighting might be ‘protected’ in terms of others seeking to deliver fire and rescue services.

The Localism Bill would also potentially place a duty on local authorities to maintain a list of land and buildings of community value in their area. Assets might be included on the list on the nomination of a community group or on the initiative of the local authority, providing a test of “community value” (to be clarified in regulations) was met. The list was to be made publicly available. Inclusion on the list was registrable as a local land charge and the owner might seek a review of a decision to list their property. The main effect of listing was that, where the local authority received notice that the owner of the asset intended to dispose of it, there was a window of opportunity within which a community group could submit a proposal to acquire it. In that way it was intended that local communities had the opportunity to preserve for community usage assets of local value that might be threatened with closure (e.g. the village post office or local community centre).

An Independent Member referred to the Community Right to Challenge and queried whether there might be circumstances in which the role of this Committee might be subjected to a challenge in terms of the function of dealing with Member conduct. The Secretary/Director of People suggested that this question could be left for consideration under the next Agenda Item (Minute 3588 below).

Resolved - (a) That it be a recommendation to the Fire Authority that the present Chairperson (Mrs Clarke) should continue to hold office until the end of the current municipal year (i.e. until the Annual Meeting of the Fire Authority in 2012), and

(b) that the report be noted and a further progress report be submitted in due course. .

20

Governance & Standards Committee 6 September 2011

3588 CODE OF CONDUCT- IMPACT OF LOCALISM BILL - The Secretary/Director of People submitted a report, further to Minute 3516, drawing attention to the separate report on the Agenda for this meeting providing a general update upon progress of the Localism Bill in the House of Lords (Minute 3587 above refers) and also a specific issue arising from the Bill raised previously by the Monitoring Officer in respect to the possibility of adopting a single Member Code in the Humberside area (comprising the 4 Unitary Councils and the Humberside Police) following the proposed abolition of the current National Code. At the previous meeting of the Committee Members had agreed that the Monitoring Officer should approach each of the Unitary Councils and Humberside Police and seek views as to whether there was, in principle, a willingness to consider a joint Code in due course. At the time of writing the report now submitted there had been four responses (from Hull City Council, East Riding of Yorkshire Council, North Lincolnshire Council and Humberside Police). There was some suggestion that the Local Government Association might consider issuing national guidance, but that remained to be seen. There appeared to be a cautionary in principle agreement from three responses that there would be benefit in exploring a joint Code, with the fourth indicating a ‘wait and see’ approach.

The Secretary/Director of People reminded Members that he had a concern that a situation might arise where the 4 Unitary Council and Humberside Police could have a different Code to the Fire Authority, or no Code at all but the responses received had indicated that they were all broadly supportive of the need for a Code with some form of commonality following the abolition of the National Code. When the Bill was first proposed it was envisaged that there would be some transitional arrangements.

An Independent Member referred to the Community Right to Challenge and queried whether there might be circumstances in which the role of this Committee might be subjected to a challenge in terms of the function of dealing with Member conduct. The Secretary/Director of People stated that with regard to a challenge to have the Member conduct process managed by another Authority that was something that might come out of legislation but explained that the work of this Committee had been much broader than just managing the Member conduct process, and therefore it was something that would need to be looked when guidance was available.

Resolved – (a) That the report be noted and that the Monitoring Officer continue to pursue a joint Code at the appropriate time, and

(b) that a further report be submitted when any guidance becomes available regarding the Community Right to Challenge in respect to the Member conduct function.

3589 OPENING PUBLIC SERVICES – WHITE PAPER - The Secretary/Director of People submitted a report highlighting the White Paper ‘Opening Public Services’ announced on 10 July 2011. Depending upon how the White Paper progressed, there could be significant impact upon the Fire & Rescue Service although unless and until a Bill emerges, it was difficult to be more certain at this stage. The White Paper was part of the ‘Big Society’ and Localism agenda, and it was suggested to be no longer a top down approach. The White Paper seemed to be the final piece in the overall jigsaw of the suggested modernisation of the public sector. Consequently the White Paper fitted with:

 Localism Bill, particularly the Right to Challenge  General power of competence  Business rate retention plans  New revenue raising powers  Health and well being boards  Community budgets pilots  Transparency agenda  Police and Crime Commissioners, Elected Mayors 21

Governance & Standards Committee 6 September 2011

The White Paper was stated to be based on 5 key principles:

1) Choice (wherever possible choice to be increased by giving people direct control)

2) Decentralisation (power to be devolved down to lowest level)

3) Diversity (opening to new providers, i.e. voluntary or private sector)

4) Fairness (access to all to compete)

5) Accountability (all public bodies to be accessible and accountable to local people – backed by transparency agenda)

The emphasis seemed to be that if the function cannot be decentralised at a local level then it should be part of commissioned services. There was further emphasis upon joining up with others. Services were broadly grouped into three categories:

 Individual services – put in hands of people  Neighbourhood – put in hands of Councils  Commissioning – decentralise, open up to competition

The White Paper was however silent upon the Fire & Rescue Service which did not appear to fall under what were described as being individual services. However, community safety activity would certainly fall under neighbourhood services; in terms of broader response and control, then these could fall under commissioned services, and Corporate Support again would be part of commissioned services.

What the White Paper described was that individual services would be put in hands of users. Neighbourhoods in the hands of elected councils (at neighbourhood level, if that is what people want). For commissioned, the services would be opened up to ensure a diverse range of providers were able to offer public services. There might be a Right to Challenge given to the private sector, with a right to propose new ways to deliver services and linking payment to results. Commissioning was also suggested, in the launch speech of the White Paper, in terms of trying to seek 3 providers to compete to run services. The commissioning approach would not apply to national security or the judiciary, which included the military and core policing. There might be some aspects of Fire & Rescue which would fall under national security.

Members were asked to note the following Summary Questions/Issues under the White Paper:

 It is unclear as to the status of Fire as a frontline service under the White Paper.

 Local authorities may be given role of people’s champions for all public services in area (a real prospect).

 The White Paper still does not give any certainty, and is vague in detail and there appears to be little central support available to enable transition/change to happen. It is, however, a White Paper and more detail will follow no doubt.

 There will be consultation with plans earmarked to be announced in November 2011.

 There remain questions around delivery models, for example, Mutuals, coop models, including broader issues around TUPE, pensions, VAT, liability and exit of arrangements which may emerge. There was announced some time ago a £10m budget supporting these delivery models.

22

Governance & Standards Committee 6 September 2011

 The White Paper represents a number of challenges and opportunities, and the Authority will need to be in a position to respond.

The Secretary/Director of People indicated that a report would be submitted to the next meeting of the Policy and Executive Committee on 9 September 2011 in which the Director of Finance/Section 151 Officer would report on funding issues.

An Elected Member queried whether there was any indication of timescales with regard to the progression of matters included in the White Paper. The Secretary/Director of People stated that there was not any timescales laid down but judging by action by the Government in other areas he thought any timescale could be fairly swift and it was likely that a draft Bill would emerge later this year. An Independent Member queried whether in the event that a Bill included provisions which the Fire Authority did not like, would there be a mechanism to make representations. The Secretary/Director of People stated that there would probably be a consultation process. An Independent Member referred to Paragraph 11 of the report and queried if Officers had any idea as to the impact of the White Paper on the Authority’s workstreams. The Secretary/Director of People stated that the impact was around certain services being commissioned and provided in a new way. The Chief Fire Officer and Chief Executive stated that whilst the community would always need a Fire and Rescue Service the Authority needed to be able to respond to whatever comes out legislation.

Resolved – That the report be noted.

3590 THIRD REVIEW OF CORPORATE GOVERNANCE - The Secretary/Director of People submitted a report, further to Minute 3515, encapsulating recent discussions at the Member Day on the 19 July 2011 and previous reports to the Committee in respect to the Third Review of Corporate Governance. At the Member Day those Members present had indicated their support that the third review should take place as follows:

 Member Day 12 September 2011 – part initial discussion around HFA structure;

 Member Day 14 October 2011 - to continue Member discussion;

 Member Day 9 December 2011 - to finalise review (unless concluded on 10 October);

 The starting point of the review would be a Member questionnaire;

 The main focus of the review will be whether a Board-like structure would provide a stronger governance model going forward;

 The review would be facilitated by the Secretary/Monitoring Officer, but also with a lead from the Chair/Vice Chair of the Fire Authority, and support from the Chair of the Governance and Standards Committee;

 The review would be completed in readiness for the new Authority 2012.

With regard to the proposed use of a questionnaire Members were reminded that whilst there would always be mixed views around the merits of questionnaires, the questionnaire should be seen as a catalyst for debate rather than an end in itself. Previously Member returns of questionnaires had fallen short of a full return (and it was to be hoped that all Members of the 2011/12 Authority find time to complete a questionnaire), To that end the original CIPFA/SOLACE good governance questionnaire used previously and bespoke questionnaire had been much reduced and would also provide some background to the previous two reviews. The questionnaire, while significantly shorter than the previous questionnaires, still needed to pick up key issues from previous reviews and the themes from the CIPFA/SOLACE good governance framework. Added to that was the significant

23

Governance & Standards Committee 6 September 2011 number of new Members (16) since the 2009 Review. The themes emerging from the questionnaire would form the focus for the Member debates on 10 October 2011, and thereafter. It would be important when having those debates that Members look to the medium/longer term in respect to a future governance structure. It would be desirable that once agreed, such a fundamental structural review was not then undertaken for 3 to 5 years, albeit that there would always be ongoing opportunities to enhance the approach to governance. In terms of external factors, Members would need to have regard to the Localism Bill (particularly the impact upon the Standards Sub-Committees), possible changes to the community-based budgeting, and the White Paper concerning future public services (Minute 3589 above refers). In essence, the governance structure must be fit for purpose to enable an effective planned response to those challenges ahead. Increasing public engagement/involvement should also be considered further.

An Independent Member queried whether in view of the Localism Bill the timing of the review was unfortunate. The Secretary/Director of People acknowledged that in a way it was and stated that his view was that given the challenges ahead a more effective structure i.e. a Board would be to the good in meeting those challenges, but that the structure of the Authority was something to be discussed by Members on 12 September 2011.

Resolved – That the report be noted and the proposed approach to the Third Review of Corporate Governance endorsed.

3591 REVIEW OF MEMBER TRAINING GENERALLY AND SPECIFICALLY AROUND STANDARDS – This item was taken in conjunction with Agenda Item 11 (Member Development and Regional/Sub-Regional Update). The Secretary/Director of People reported orally that the Authority had not arranged any recent training and that given the previous discussion with regard to the Localism Bill the difficulty was whether it was appropriate to arrange any further training on the existing Standards regime. The Secretary/ Director of People stated that some Members had previously had training but also that it should be borne in mind that the Authority had had very few complaints under the existing regime. The Secretary/ Director of People reported that regionally there was a network of Development Officers looking at a number of areas for Member development/training purposes and that some Members might be aware of opportunities through their home Authority. There was some consultation taking place on putting a package together on Member needs, particularly as there was still some RIEP funding available and stated that if Members had any particular training needs he could put them forward to the regional Officers. The Secretary/Director of People stated that his only slight concern was in ensuring that any Members who might be called upon to be members of an Assessment/Appeal Sub- Committee were adequately trained especially given the time lapse between meetings due to the low number of complaints under the Code, and suggested that he could check with East Riding Council whether they were offering any appropriate training to their Members.

An Independent Member commented that he had found the training DVD produced by Standards for England and which had previously been viewed by all Members of this Committee a very informative as a training package.

Resolved – That the Secretary/Director of People contacts the 4 Unitary Authorities to see if they are offering any training, particularly on the Code, and if not that further consideration be given to Members’ training requirements.

3592 MEMBER ATTENDANCE 2011/12 TO DATE - The Secretary/Director of People submitted a report setting out details of Member attendance at both formal meetings of the Authority and Member Days during 2011/12 for the period to 31 July 2011. The purpose of the report was to enable the Committee to monitor and review Member attendance at meetings of the Authority. Details of individual Member/Independent Member attendance at formal meetings up to 31 July 2011 were set out in Appendix 1 to the report. Details of attendance at meetings as an observer and also attendance at Member Development Days

24

Governance & Standards Committee 6 September 2011 in 2011/12 were set out in Appendix 2. The Authority had adopted a system of recording reasons given by Members for non-attendance at meetings and agreed that the system should be monitored by this Committee. A summary of the use of the system up to 31 July 2011 was set out in Appendix 3. As previously agreed by the Committee the information would be forwarded to the political group leaders at the Constituent Authorities after consideration by this Committee.

Resolved – That the report be received.

3593 MEMBER DEVELOPMENT AND REGIONAL/SUB-REGIONAL UPDATE – This item was dealt with under Minute 3591 above.

3594 STRATEGIC RISK REGISTER - The Secretary/Director of People submitted a report, further to Minute 3518, reminding Members that the Authority’s performance and risk management processes had now been combined in to a single framework. The existing format for risk registers had been refreshed and a new automated approach using the Service’s information portal would be used, which would vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning. Two Corporate level risks/opportunities remained on the Strategic Risk Register. The remainder of risks previously recorded on the former Corporate Risk Register were now managed through the various Boards and feature on their relevant Risk Registers. A copy of the Strategic Risk Register was attached at Appendix 1 to the report. The Register was also available on the Authority’s website and should Members wish to receive hard copies of some or all of the associated Action Plans, then that can be arranged. Members were asked to review the Strategic Risk Register and to provide an assurance that Members consider that the Register properly reflects the key issues facing the Authority. In addition, through the Committee structure (particularly the Audit, Performance and Scrutiny Committee), Members should be satisfied that the Action Plans were effective and appropriate steps were being taken to further embed and resource corporate risk management. In addition, further assurance could be taken from the role of the Performance & Risk Board and the reporting of Corporate and Board level risks. Members were also asked to use the Strategic Risk Register as a tool to drive (in part) the agenda and discussions at the Fire Authority meetings.

Independent Members commented that they had not found the new Register format (hard copy and on the Authority’s website) very clear or easy to understand and that this was in part due to the use of jargon. The Secretary/Director of People explained that some of the issues were simple ‘teething’ problems with the new reporting system and stated that they would be rectified for future reports.

Resolved – That the report be noted and that Members take assurance from the progress in the effective use of risk management.

3595 GOVERNANCE ISSUES – Mr Hughes reported that since the Annual Meeting of the Authority in 2011 he had observed at a recent meeting of the Audit, Performance & Scrutiny Committee an increased participation by Members of that Committee in its proceedings which he had found refreshing and an improvement on previous meetings, although he acknowledged that that might have been attributable to there being a number of new Members having to ask questions to which former Members might have known the information. The Chief Fire Officer and Chief Executive stated that it was to do with making information available at meetings in a way that can raise challenge by Members.

3596 INSPECTION OF MEMBER REGISTERS – The Member Registers of Interests and Declarations of Gifts and Hospitality were made available for inspection by any Member of the Committee as part of their monitoring role.

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Governance & Standards Committee 6 September 2011

3597 INSPECTION OF OFFICER REGISTERS – The Officer Registers of Interests and Declarations of Gifts and Hospitality were made available for inspection by any Member of the Committee as part of their monitoring role.

3598 EXCLUSION OF THE PRESS/PUBLIC - Resolved – That the press and public be excluded from the meeting for consideration of the following item (Minute 3599) on the grounds that it is likely to involve the disclosure of exempt information as defined in paragraph 1 of Part 1 of schedule 12A of the Local Government Act 1972.

(In making its decision, the Committee confirmed that, having regard to all circumstances, it was satisfied that the public interest in maintaining the exemption outweighs the public interest in disclosing the information).

(Councillor Briggs left the meeting for the consideration of the following item (Minute 3599).

3599 ALLEGATION OF BREACH OF MEMBER CODE REF 1-2011 (LOUDON) - The Secretary/Director of People submitted a report setting out the action taken by the Monitoring Officer, in consultation with the Chairperson of the Governance and Standards Committee, under the procedure regarding complaints of Member Misconduct. As part of that procedure, where a complaint is dismissed because it discloses no breach of the Code, then the Monitoring Officer can dismiss the complaint. However, as a safeguard a report should be received by this Committee to review any such action taken. Attached at Appendix 1 to the report was correspondence with the Complainant, including the allegation of a breach of the Code of Conduct. Members were invited to refer to the Code of Conduct and the procedure for dealing with allegations of misconduct. It was for this Committee either to endorse the steps taken by the Monitoring Officer or decide that the matter be taken forward to the Assessment Sub-Committee. The Secretary/Director of People stated that in the event that the Committee wish to refer the matter to the Assessment Sub-Committee it would be necessary, in view of his involvement as Monitoring Officer in the case thus far, to arrange for a Monitoring Officer from another authority, either Fire or one of the Constituent Unitary Authorities to take the matter forward in his place. There is a reciprocal agreement in place with West Yorkshire Fire and Rescue.

Resolved – (a) That the case be referred to the Assessment Sub-Committee, and

(b) that it be noted that the Secretary/Director of People will arrange for Monitoring Officer guidance at the Assessment Sub-Committee to be available.

Meeting closed at 11.55 am

26

Agenda Item No. 7(b) Policy and Executive Committee 9 September 2011

HUMBERSIDE FIRE AUTHORITY

POLICY AND EXECUTIVE COMMITTEE

9 SEPTEMBER 2011

PRESENT: Councillors Briggs, Engall, Gardiner, Gemmell OBE, Mole and Shipley.

Mr Jepson (Independent Member of the Governance and Standards Committee) attended the meeting as an observer.

Chief Fire Officer & Chief Executive, Deputy Chief Officer & Director of Operations, Assistant Chief Officer/Director of Safety, Secretary/Director of People, Director of Finance/Section 151 Officer, Head of Human Resources, Equality & Diversity Manager and Committee Manager were also present.

The meeting was held at Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 10.00 a.m.

Apologies for absence were submitted by Councillors De Freitas (4.Holiday) and Ibson (3.Constituent Authority commitments).

(The Secretary/Director of People took the Chair for the following item (Minute 3600).

3600 APPOINTMENT OF CHAIRPERSON FOR THIS MEETING - Resolved – That in the absence of the Chairperson (Councillor De Freitas) Councillor Gemmell OBE be elected Chairperson for this meeting.

(Councillor Gemmell OBE took the Chair).

3601 DECLARATIONS OF INTEREST – There were no declarations.

3602 MINUTES – Resolved – That the minutes of the meeting of the Committee held on 10 June 2011 be approved as a correct record and signed by the Chairperson.

3603 MANAGEMENT ACCOUNTS TO 31 JULY 2011 – The Director of Finance/ Section.151 Officer submitted a report containing the Authority’s Management Accounts and Prudential Indicators for the period ending 31 July 2011. The summary estimated outturn position from the Management Accounts and Prudential Indicators was as follows:-

 Revenue Budget - £ 764k underspend;  Capital Programme - £ 5.1m total expenditure;  Pensions Account - £ 7.06m deficit

A Member asked whether the Pension Scheme governed by Financial Reporting Standard (FRS) 17. The Director of Finance/Section 151 Officer confirmed that it was.

Resolved - That the Authority’s financial position for the period ending 31 July 2011 be approved.

3604 ORGANISATIONAL DEVELOPMENT – 10 YEAR VISION - The Chief Fire Officer and Chief Executive and Secretary/Director of People submitted a report, further to Minute 3531, reminding Members that at the previous meeting of this Committee they had received a report setting out a fresh approach to organisational development. That approach was also highlighted at the induction event for new Members and the Member Day on 19 July 2011. The report now submitted provided an update upon progress. Since the previous meeting of the Committee, the Corporate Management Team (CMT) had been developing a draft10 year vision for the Service which was very much a draft and a starting point for

27 Policy and Executive Committee 9 September 2011 discussion/debate. An indication of the draft vision was given at the Member Day on 19 July 2011. Members were reminded of the approach to Organisational Development, set out in Appendix 1 to the report, with CMT developing an initial long-term picture/vision for the Service which would then be taken through a Sounding Board and then to the Fire Authority for discussion and further development. The Sounding Board would soon be formed with over 50 expressions of interest in sitting on the Board having been received from staff. The Sounding Board would act as a forum for CMT to present a raw vision for the next 10 years, enabling early debate and consideration of the views of the Sounding Board. A more refined and draft vision would emerge which would come before Members for further debate and discussion, leading to a draft plan for wider engagement and then consultation. The Change Board, which had a clear focus upon future organisational development, had now met twice and part of its current work, was in respect to the workstreams under the current Strategic Plan, progress upon which would be reported separately to Members. Members could expect to receive reports in the next cycle with regard to progress upon organisational development and an emerging 10 year vision.

A Member welcomed the proposed involvement of Members and stated that how that involvement should be carried out might need some discussion at a Member Day to allow for Member input into the approach to be adopted.

Resolved – That the report be noted.

3605 BOARDS – INTERNAL GOVERNANCE UPDATE - The Secretary/Director of People submitted a report, further to Minute 3532, outlining progress with regard to the introduction of Boards as a new internal governance structure. Members were reminded that in February 2011, the concept of an internal Board structure was developed, primarily aimed at developing new ways of working by breaking down directorate silos and increasing the involvement/engagement of middle managers, with much increased delegated decision making powers. The previous report to this Committee had set out the rationale for the Board structure. Before the Boards were established there was an issue around the time it took for certain projects or areas of work to be delivered, which was sometimes due to teams or directorates not always working effectively together, perhaps not getting the right people engaged from the outset or simply not being clear about priorities. The Boards were created to develop cross-directorate working and replace current groups such as Scope, the Active Risk Team and the Operational Performance Group. More responsibility had been given to managers who sat on the Boards, so the Boards would make decisions rather than all decisions going to the Corporate Management Team (CMT).

In April 2011 five shadow Boards were introduced to streamline priorities to ensure all areas of the Service sat together to make things happen and to prevent work from being duplicated elsewhere in the Service, as well as giving more delegated authority to managers. Members’ attention was drawn to Appendix 1 to the report which set out the role of the Boards, membership, frequency and also some of the subjects that had been debated so far. Appendix 1 also showed how the Boards fitted within the structure of the organisation. The initial membership of the Boards was decided by Board Chairs and Vice Chairs, but in the early phase membership had changed to reflect who needed to be at each meeting. Depending on the agenda, other managers might attend a Board meeting. The Representative Bodies had also been asked to put forward an agreed nomination who would be invited to attend Board meetings as an observer. That approach strengthened engagement and openness. The Boards would be looking at ways to increase the opportunities for the involvement of staff, particularly Station Managers. The Boards were open to anyone to attend and observe. As with all new ways of working, there was always going to be a need to review, adjust and keep under review, to make sure the Boards were working well and were focused. CMT had undertaken an initial review and the five Boards were now agreed, with a sixth now introduced, the Change Board. The early success of the Boards could be seen by directorates and managers working closer and better together, with some good discussions taking place at Board meetings and progress being made on a number of projects. The Boards would now identify a number of priorities for the rest of the

28 Policy and Executive Committee 9 September 2011 year, which would be approved by CMT and be published for all staff to see. For example, the People Board would focus upon the development of a draft People Strategy, review of the Conduct and Performance Procedure and review of Promotions Policy. The newest Board was the Change Board. It was different to the other Boards in terms of its focus. The other five Boards should be seen as delivery boards, whilst the Change Board was focused on organisational development helping to develop and translate a longer-term vision. The overarching objectives of the Board were to oversee the implementation of the Strategic Plan, develop and communicate the Service Vision, and establishing a programme for changing the culture of the organisation.

A Sounding Board was also in the process of being established and would have a completely different role and membership compared to the other Boards. Last year staff suggested that Service Plans appeared to be already set in stone by the time they were able to comment. The intention of the Sounding Board was to give staff an early voice before plans were developed and to give staff the opportunity to become involved at an early stage to help to shape the future long-term vision for the Service. The Sounding Board would act as a forum for debate around the future vision of the Service. It was thought at this stage that the Sounding Board would meet for the first time in September 2011 when CMT would present its initial Vision to the Board, who would then debate and discuss the vision before giving feedback to CMT. Attention was drawn to a separate report on the Agenda for this meeting concerning organisational development (Minute 3604 above refers).

CMT would review the Boards again in the autumn to ensure they were working effectively and delivering upon agreed priorities. The Board structure was still in its infancy and undoubtedly would develop in time, playing a fundamental role in delivering strategic priorities and in making organisational change. This new way of working was not an easy adjustment and it was recognised that staff, who currently sit on Boards and who might do in the future, would need to be supported and opportunities for development would be progressed. The Secretary/Director of People reminded Members that at the Member Day on 12 September 2011 one of the discussions would be about a possible Board structure for the Authority.

A Member stated that he was looking for the outcome of the review of the internal Board structure to see how the Boards were actually performing. The Secretary/Director of People stated that the key barometer would be progress against priorities and that he would report back to the next meeting of this Committee. A Member referred to paragraph 13 of the report and sought clarification of the membership of the Sounding Board. The Secretary/Director of People stated that whilst the Boards comprised staff at more Senior/ Middle Manager level and above, the Sounding Board would comprise staff at a lower level. The Chief Fire Officer and Chief Executive state that the existence of a Sounding Board was a clear indication that the Authority wished to involve staff.

Resolved - That the report be noted and that Members of this Committee take an assurance from the progress being made in developing the internal Board structure.

3606 SOME KEY EXTERNAL DEVELOPMENTS - The Secretary/Director of People and Director of Finance/Section151 Officer submitted a report bringing to Members’ attention a number of external developments and highlighting the White Paper ‘Opening Public Services’ announced in early July 2011. The report also set out an update upon the Localism Bill, particularly the Community Right to Challenge and the current status of the Local Government Resource Review. These key developments were undoubtedly linked and would represent potential challenges or opportunities to the Fire & Rescue Service. The Governance and Standards Committee at its meeting on 6 September 2011 had received a report on those key external developments relevant to the role of that Committee.

Future Funding – Local Government Resource Review - Phases1 & 2 - Members were reminded of the first phase of the Local Government Resource Review which was looking at potential options for the local retention of Business Rates. A series of

29 Policy and Executive Committee 9 September 2011

technical papers were out for consultation at the moment with a closing date for comments of 24 October 2011. There were two broad options for single purpose Fire and Rescue Authorities (FRAs) for 2013/14 and 2014/15 as follows:

(i) That single purpose FRAs would be funded (in addition to the local precept) through a percentage share of each district council’s billing authority business rates baseline, subject to any tariff or top-up required to bring them to their baseline funding level. For Humberside FRA this would essentially mean a percentage share of the business rates baseline of the 4 unitary authorities in the Humberside area;

(ii) That single purpose FRAs would be funded (in addition to the local precept) through fixed funding allocations for 2013/14 and 2014/15 through an adjustment to the forecast national business rates.

The option to be followed would be determined through the current consultation process. In many ways the impact on FRAs in the longer term might well be overtaken by the second phase of the Local Government Resource Review which was due to conclude by April 2013. Phase 2 centred heavily on Neighbourhood Level Community Budgets and the concept of a single budget for a place. The first strand would invite communities in two local authority areas to co-design with local services and Whitehall how a Neighbourhood Level Community Budget and Local Integrated Services approach could be implemented. It would consider, for example, the level of influence or control wanted by the community, which services should be included and the governance and accountability arrangements. The second strand would involve two areas, comprising local authorities and their partners, working with Whitehall to co-design how a Community Budget comprising all spending on public services in an area might be implemented. The review would set out an Operational Plan for each area that set out what a single budget, or options for pooling resources would look like. Importantly, the work would specifically look at what outcomes could be delivered, governance arrangements, the redesign of services required to achieve the outcomes and how new financial approaches would work. Whilst not explicit in the papers released so far by the Government, it was difficult not to see this having a significant bearing on the Government’s work to “fully review the way in which fire and rescue authorities are funded” with implementation of any changes taking effect from the 2015/16 financial year. Members would be kept up to date on these key workstreams as they progress over the coming 18 months.

A Member referred to the closing date for comments being 24 October 2011 and the need for Members to take ownership as a Fire Authority of that response and suggested that there was a need for Members to be building up the lobbying of the areas Members of Parliament so that they understand the Authority’s views as to where it wants to be and also Members should take any opportunities that presented themselves at the home authorities to put forward the Fire Authority’s views. The Chief Fire Officer and Chief Executive reported that the Chief and Assistant Chief Fire Officers’ Association (CACFOA) had been quite active and had recently challenged the Fire Minister who had made a categorical statement that the proposals would not apply to operational activities. The Chief Fire Officer and Chief Executive stated that in terms of Support functions the Authority should look to be competitive.

Opening Public Services White Paper - The White Paper ‘Opening Public Services’ was announced on 10 July 2011. The White Paper seemed to be the final piece in the overall jigsaw of the suggested modernisation of the public sector. Consequently the White Paper fitted with:

 Localism Bill, particularly the Right to Challenge  General power of competence

30 Policy and Executive Committee 9 September 2011

 Business rate retention plans  New revenue raising powers  Health and well being boards  Community budgets pilots  Transparency agenda  Police and Crime Commissioners, Elected Mayors

The White Paper was stated to be based on 5 key principles:

1) Choice (wherever possible choice to be increased by giving people direct control)

2) Decentralisation (power to be devolved down to lowest level)

3) Diversity (opening to new providers, i.e. voluntary or private sector)

4) Fairness (access to all to compete)

5) Accountability (all public bodies to be accessible and accountable to local people – backed by transparency agenda)

The emphasis seemed to be that if the function cannot be decentralised at a local level then it should be part of commissioned services. There was further emphasis upon joining up with others. Services were broadly grouped into three categories:

 Individual services – put in hands of people  Neighbourhood – put in hands of Councils  Commissioning – decentralise, open up to competition

The White Paper was however silent upon the Fire & Rescue Service which did not appear to fall under what were described as being individual services. However, community safety activity would certainly fall under neighbourhood services; in terms of broader response and control, then these could fall under commissioned services, and Corporate Support again would be part of commissioned services.

What the White Paper described was that individual services would be put in hands of users. Neighbourhoods in the hands of elected councils (at neighbourhood level, if that is what people want). For commissioned, the services would be opened up to ensure a diverse range of providers were able to offer public services. There might be a Right to Challenge given to the private sector, with a right to propose new ways to deliver services and linking payment to results. Commissioning was also suggested, in the launch speech of the White Paper, in terms of trying to seek 3 providers to compete to run services. The commissioning approach would not apply to national security or the judiciary, which included the military and core policing. There might be some aspects of Fire & Rescue which would fall under national security.

Members were asked to note the following Summary Questions/Issues under the White Paper:

 It is unclear as to the status of Fire as a frontline service under the White Paper.

 Local authorities may be given role of people’s champions for all public services in area (a real prospect).

 The White Paper still does not give any certainty, and is vague in detail and there appears to be little central support available to enable transition/change to happen. It is, however, a White Paper and more detail will follow no doubt.

31 Policy and Executive Committee 9 September 2011

 There will be consultation with plans earmarked to be announced in November 2011.

 There remain questions around delivery models, for example, Mutuals, coop models, including broader issues around TUPE, pensions, VAT, liability and exit of arrangements which may emerge. There was announced some time ago a £10m budget supporting these delivery models.

 The White Paper represents a number of challenges and opportunities, and the Authority will need to be in a position to respond.

Localism Bill - The report outlined the progress of the Bill through Parliament and indicated that it was still likely that the Bill would receive Royal Assent towards the end of the year or in early 2012. Members were informed that a published plain English guide to the Localism Bill was available. In terms of the debates in the House of Lords regarding the proposed abolition of the current Standards regime, there was no mention of changes/proposed amendments. There were however reservations around the right to challenge, but those were yet to materialise into substantive amendments. Therefore the current Standards regime would soon come to an end, with transitional arrangements expected in the autumn. To that end it would be necessary as part of the Third Review of Corporate Governance, as highlighted at previous meetings, to consider the future role of the Governance and Standards Committee and its membership. Members were reminded that the Localism Bill contained the proposed Community Right to Challenge which would enable a voluntary body, community group, charity or social enterprise to express an interest in running a local service. It was intended that that would encourage greater diversity of service provision, reduce costs, and encourage innovation and responsiveness. Whilst Fire and Rescue Authorities (FRAs) were not currently included in the description of “relevant authorities”, those fire and rescue services which were part of county councils would be included. The Government had therefore consulted on extending the description to include all FRAs (i.e. including combined FRAs), in the interests of national consistency. If a combined FRA was to be subject to the Right, the question would then arise as to which of its services would be regarded as “relevant services”. The recent Government consultation suggested that that would not include core activities including fire fighting and responding to road traffic accidents. However, on the face of the consultation responses, that would leave some areas of service provision that could potentially be subject to the Right, for example, training. However, even in those cases it would be open to the FRA to set a window of time during which it was prepared to consider any expressions of interest received, and not consider any submissions received outside of that period. The mere receipt of a submission would not bind a FRA, which would be free to accept or reject it. The position on Community Right to Challenge would become clear, however, Members were advised to read across the clear intention of opening up public services in the recent White Paper. To that end, it was likely that only front- line firefighting might be ‘protected’ in terms of others seeking to deliver fire and rescue services.

Resolved – That the report be noted.

3607 EQUALITY AND DIVERSITY UPDATE – The Secretary/Director of People and the Equality & Diversity Manager submitted a report, further to Minute 3534, updating Members on progress against the Single Equality Scheme, and building on other reports already submitted to the Policy and Executive Committee during 2010/11. The report also highlighted that the Peer Assessment revisit would take place on 20 October 2011 and that there would be a need for Elected Member involvement. The Secretary/Director of People also highlighted his intention to move equality and diversity into a broader organisation development role.

32 Policy and Executive Committee 9 September 2011

A Member referred to paragraph 13 of the report and queried when the results of the Mosaic testing would be available. The Secretary/Director of People stated that a report would go to the Fire Authority on 27 September 2011 containing an update. A Member urged Members to be involved in the Peer Assessment revisit on 20 October 2011 and suggested that a short presentation should be included in the Member Day on 14 October 2011 to encourage Members to attend. A Member referred to paragraph 10 of the report regarding bullying and harassment benchmarking against Cumbria Fire and Rescue Service and suggested that this Authority should simply state that bullying and harassment will not be tolerated within the Humberside Fire and Rescue Service (HFRS). A Member echoed that view and stated that comparison with other authorities was not a good indicator. The Equality and Diversity Manager explained that the Authority compared itself with Cumbria Fire and Rescue Service as that Service was of this Authority’s critical friends and suggested that had the comparison identified that HFRS had more cases of bullying and harassment it would have flagged up more clearly that there were issues which this Authority needed to address. A Member stated that what the Committee did need to see was the number of cases within HFRS compared with previous years. The Chief Fire Officer and Chief Executive stated that the Authority’s performance on equality and diversity had made significant progress but that it was important to continue that good work. The Chief Fire Officer and Chief Executive informed Members that Area Manager Oprey had recently been appointed the national Officer lead to the Chief and Assistant Chief Officers’ Association on Equality & Diversity.

Resolved - (a) That the Committee endorses the work undertaken by the Equality and Diversity Team and progress made against the Single Equality Scheme, and

(b) that the Committee support the future development of equality and diversity as an integral part of organisation development, playing a key part in the People Directorate.

3608 STRATEGIC RISK REGISTER – The Secretary/Director of People submitted a report, further to Minute 3536, reminding Members that the Authority’s performance and risk management processes had now been combined in to a single framework. The existing format for risk registers had been refreshed and a new automated approach using the Service’s information portal would be used, which would vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning. Two Corporate level risks/opportunities remained on the Strategic Risk Register. The remainder of risks previously recorded on the former Corporate Risk Register were now managed through the various Boards and feature on their relevant Risk Registers. A copy of the Strategic Risk Register was attached at Appendix 1 to the report. The Register was also available on the Authority’s website and should Members wish to receive hard copies of some or all of the associated Action Plans, then that can be arranged. Members were asked to review the Strategic Risk Register and to provide an assurance that Members consider that the Register properly reflects the key issues facing the Authority. In addition, through the Committee structure (particularly the Audit, Performance and Scrutiny Committee), Members should be satisfied that the Action Plans were effective and appropriate steps were being taken to further embed and resource corporate risk management. In addition, further assurance could be taken from the role of the Performance & Risk Board and the reporting of Corporate and Board level risks. Members were also asked to use the Strategic Risk Register as a tool to drive (in part) the agenda and discussions at the Fire Authority meetings.

Resolved – (a) That the report be noted and that Members take assurance from the progress in the effective use of risk management, and

(b) that as an action arising from the report the Strategic Risk Register be included as a task at a future Member Day.

33 Policy and Executive Committee 9 September 2011

3609 EXCLUSION OF PRESS AND PUBLIC – Resolved – That the press and public be excluded from the meeting during consideration of the following item (Minute 3610) on the grounds that it is likely to involve the disclosure of exempt information as defined in paragraphs 1, 2, 3 and 5 of Part 1 of Schedule 12A of the Local Government Act 1972.

(In making its decision the Committee confirmed that having regard to all the circumstances it was satisfied that the public interest in maintaining the exemption outweighed the public interest in disclosing the information).

3611 PINFOLD NORTH - The Secretary/Director of People submitted a report, further to Minute 3312, bringing Members up to date upon the settlement with Pinfold North. Rather than reproducing previous reports for new Members the most recent report which provides some background as to the rationale behind the settlement was attached at Appendix 1 to the report and all reports were available should Members wish for further background information.

Resolved – That Members note that the terms of the settlement are within the agreed delegated authority as per Appendix 1 to the report.

(Meeting closed at 10.57am)

34

Agenda Item No. 7(c) Audit, Performance and Scrutiny Committee 20 September 2011

HUMBERSIDE FIRE AUTHORITY

AUDIT, PERFORMANCE AND SCRUTINY COMMITTEE

20 SEPTEMBER 2011

PRESENT: Councillors Chapman MBE (Chairperson), Billard, Hudson, Walker and Waltham and Mrs Hardy (Independent Member).

Councillor Briggs and Mr D Hughes, Independent Member of the Governance and Standards Committee attended as observers.

Chief Fire Officer & Chief Executive, Deputy Chief Officer/Director of Operations, Secretary/Director of People, Director of Finance/Section 151 Officer, Head of Human Resources, Committee Manager and Ms J Rae (Audit Commission), Ms A Medic (Audit Commission) and Ms Y Mehmood (H W Controls & Assurance) were also present.

The meeting was held at the Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 10.30 a.m.

Apologies for absence were submitted by Councillors Moore (6.Other Reason), Ross (3.Constituent Authority commitments) and Wells (4.Holiday).

(Prior to the meeting Members of the Committee met with the internal and external auditors)

3612 DECLARATIONS OF INTEREST – There were no declarations.

3613 MINUTES – Resolved – That the minutes of the meeting of the Committee held on 17 June 2011 be approved as a correct record and signed by the Chairperson.

3614 ANNUAL GOVERNANCE REPORT 2010/11 – Further to Minute 3544 Ms Rae (Audit Commission) submitted the Annual Governance Report summarising the findings from the 2010/11 audit which was substantially complete. The report was submitted prior to the District Auditor giving his formal opinion on the audit. The District Auditor expected to issue an unqualified opinion on the financial statements and an unqualified value for money conclusion. In respect of the financial statements no material errors in the accounts had been identified although a number of misstatements had been adjusted in the revised statement, as set out in Appendix 2 to the report. The District Auditor had carried out sufficient work to satisfy himself that proper arrangements had been made for securing value for money. The report identified the key messages that the Fire Authority should consider before the District Auditor issued his financial statements opinion, value for money conclusion, and audit closure certificate. It included only matters of governance interest that had come to the District Auditor’s attention in performing his audit. The report asked that this Committee and the Fire Authority should (i) take note of the adjustments to the financial statements set out in Appendix 2 to the report before approving the financial statement; (ii) approve the letter of representation on behalf of the Authority before the District Auditor issued his opinion and conclusion as set out in Appendix 1 to the report, and (iii) agree the response to the proposed action plan set out in Appendix 3. Ms J Rae, Audit Commission drew Members’ attention to the section of the report which identified errors in the financial statements; significant weaknesses in internal control, and recommendations.

The Independent Member queried whether the Audit Commission had found that with the changes in reporting arising from the International Financial Reporting Standards (IFRS) that other organisations had had similar problems to those experienced by this Authority and as such the issues that had arisen were fairly typical. Ms Rae confirmed that some items such as the way in which the valuation of assets was presented in the accounts had caused difficulties in a number of authorities. The Independent Member referred to the large number

1 Audit, Performance and Scrutiny Committee 20 September 2011 of adjustments that had been made to the statement of accounts and queried whether that was due in part because the Authority had been presented with draft accounts early in the audit process. The Director of Finance/Section 151 Officer stated that whilst there was no requirement to submit draft accounts to the Authority during June 2011 he nevertheless considered it good practice to continue the previous practice of giving Members an early insight into the outturn position; in addition the introduction of IFRS had resulted in significant changes to the reporting process, and also as Members were aware there had been a change of Finance Manager at the start of the current financial year and that this was the first set of accounts produced by the new Manager who had had to endure a steeper learning curve than might have been normally expected due to the requirements of IFRS. The Director of Finance/Section 151 Officer stated that his prime objective was to have a clear set out Accounts signed off by 30 September 2011 and that the Authority was on target to achieve it. A Member asked whether the Committee could be satisfied that the amendments identified in the report had been implemented. The Director of Finance/Section 151 Officer confirmed that all the amendments identified in the report had been implemented and stated that he would submit a report to the next meeting of this Committee outlining the detailed measures that were being put in place for the preparation of the 2011/12 accounts.

Resolved – (a) That the report be noted, and

(b) that a report be submitted to the next meeting of this Committee outlining the detailed measures that are being put in place for the preparation of the 2011/12 accounts.

3615 STATEMENT OF ACCOUNTS 2010/11 – The Director of Finance/Section 151 Officer submitted a report, further to Minute 3552, which included the audited version of the Fire Authority’s accounts for the financial year 2010/11. The draft un-audited Statement of Accounts for 2010/11 had been submitted to this Committee on 17 June 2011 and to the Fire Authority on 24 June 2011. Only one change had been identified which had impacted on the outturn position ‘bottom line’, that was a correction of the accounting treatment of a prepayment (£102k) which whilst paid in 2010/11 strictly related to the 2011/12 financial year. The item was not material but the judgement was made for completeness and accuracy to correct the treatment. The amendment had resulted in a revised outturn underspend of £2.489m (£2.387m was reported in the June 2011 draft Accounts) as set out in Appendix 1 to the report. The planning for 2011/12 Annual Accounts had already begun and where possible the experiences of the first year of International Financial Reporting Standard (IFRS) compliant accounts would be used as a platform going forward. The Audit Commission’s Annual Governance Report (AGR) was included elsewhere on the Agenda for this meeting (Minute 3614 above refers). The AGR contained an unqualified opinion on the Authority’s accounts for 2010/11 and an unqualified value for money conclusion. Both of these aspects were extremely pleasing and showed another year of sound financial management. The report represented the final stages in the sign-off of the 2010/11 Statement of Accounts and the accounts would be presented for authorisation at the Fire Authority on 27 September 2011. A draft ‘Letter of Representation’ was attached at Appendix 2 to the report, which after approval at the Fire Authority would be duly signed and passed to the District Auditor. Once approved the Statement of Accounts document would be distributed to stakeholders and local libraries as well as posted on the web-site, to ensure information was as accessible as possible. A further notice would be placed in the press to inform the public that the 2010/11 audit of accounts was now closed.

A Member asked whether assets were revalued every year. Ms Medic (Audit Commission) confirmed that assets where revalued each year when there had been a change in the asset. A Member asked whether this Authority was still making payments in respect of the former Regional Control Centre (RCC) project. The Director of Finance/ Section 151 Officer stated that this Authority had never made any contribution to the RCC project because until its termination costs had been met under the New Burdens grant arrangements from Government. In response to queries by the Independent Member the Director of Finance/Section 151 Officer clarified some of the terminology used in the report. 2 Audit, Performance and Scrutiny Committee 20 September 2011

Resolved – That Members confirm that they have sufficient assurance on the Authority’s financial position for 2010/11.

3616 MANAGEMENT ACCOUNTS TO 31 JULY 2011 – The Director of Finance/ Section 151 Officer submitted a report containing the Authority’s Management Accounts and Prudential Indicators for the period ending 31 July 2011. The summary estimated outturn position from the Management Accounts and Prudential Indicators was as follows:-

 Revenue Budget - £764k underspend;  Capital Programme - £5.1m total expenditure;  Pensions Account - £7.061m deficit

The Independent Member referred to the note 4 on page 7 of the accounts regarding the lease buy-out of 5 fire appliances and queried the reasoning for that decision. The Director of Finance/Section 151 Officer stated that the Authority had decided twelve years ago, at the time the appliances were acquired, to lease the vehicles but the lease had expired and given that the life expectancy of the appliances was fifteen years it was appropriate to buy-out the lease and to retain the appliances; the current practice of this Authority was to purchase vehicles outright rather than lease. The Chief Fire Officer and Chief Executive stated that in terms of procurement the benefits of leasing or purchasing changed over time and some years ago the Authority was satisfied at that time that the benefits of leasing outweighed outright purchase. Following a query by a Member regarding the use of the ‘traffic light’ system within the accounts the Director of Finance/Section 151 Officer clarified that a change from green to amber meant that the situation was static and there had been no change from the previous report. A Member asked for an update with regard to vacancy management. The Director of Finance/Section 151 Officer stated that the Authority has had a recruitment freeze for some time now and certain posts were only filled in exceptional circumstances, on a case by case basis. In response to a query by a Member regarding the forecast variances listed in note 3 on page 5 of the accounts the Director of Finance/Section 151 Officer and the Secretary/Director of People explained the reasons for the variances.

Resolved - That Members confirm that they have received sufficient assurance on the Authority’s financial position for the period ending 31 July 2011.

EXTERNAL AUDIT – AUDIT COMMISSION

3617 External Audit Progress Report and Briefing – Ms Rae (Audit Commission) submitted a report, further to Minute 3545, on progress on the audit work that the District Auditor was undertaking for the audit of financial statements and the Value for Money (VfM) conclusion 2010/11 as set out in Appendix 1 to the report. Since the meeting of this Committee on 17 June 2011 the Commission had completed their examination of the Authority’s 2010/11 financial statements. The Commission’s work on the financial statements was substantially complete and the findings from their work and the draft opinion were included in the Annual Governance Report which was a separate report on the Agenda for this meeting (Minute 3614 above refers). The report also drew Members’ attention to briefing notes on the following matters of interest:

 Update on the future of the Audit Commission  Fee Rebate 2011/12  Treasury Management Code Essentials – CIPFA publication  Consultation on 2012/13 work programme and scales of fees

Resolved – That the report be noted and that Members take assurance from the progress on the external audit plan.

3 Audit, Performance and Scrutiny Committee 20 September 2011

INTERNAL AUDIT - DELOITTE

3618 IT Security and Network Infrastructure Review – In the absence of a representative from Deloitte the Director of Finance/Section 151 Officer presented a report by Deloitte indicating that the objective of the internal audit was to assess the appropriateness of the design and operation of selected internal controls in place over the Windows 2003 domain and network infrastructure, including the server room at Humberside Fire and Rescue Service Headquarters. The audit of the system of internal operating controls over information security and network infrastructure, in the specific areas described in the audit scope set out in Appendix 1 to the report, found that whilst there was a basically sound system of internal control design; there were weaknesses that might put some of the system objectives at risk. The summary assessment in terms of the adequacy and compliance of the system of internal controls under review was set out below:

Evaluation Testing Substantial Substantial

The audit had identified four important control recommendations in relation to the following issues:

• Weaknesses were identified with the design of password policies applied on the Windows domain;

• Five user accounts on the Windows domain were found to possess but not require Domain Administrator access, which provides system administration capabilities;

• The starters and leaver's process to create, modify and remove user access on the Windows domain was found not to be operating effectively; and

• 44 issued key cards did not require access to the server room. Further, there is no formal process in place to review the output of server room logs, the process to obtain access to the server room is informal and there is no formal review of user access to the server room.

The report set out the key conclusions of the audit and also the agreed key management actions.

A Member referred to the key recommendations with regard to access to the server room and queried the timescale for the implementation of the recommendations. The Director of Finance/Section 151 Officer stated that the recommendations were currently under consideration and that the completion date of March 2012 was a backstop. The Independent member referred to the recommendation regarding the need to review user accounts and sought clarification of the issue that had been raised. The Director of Finance/Section 151 Officer stated that Deloitte had flagged up that there were some accounts which had not been used. The Independent Member queried the situation with regard to leavers from the Service who had active domain accounts. The Director of Finance/Section 151 Officer stated that there might not be any implications arising and that the access might have been by a management log-in, and also that the report gave a good level of assurance although there were some issues that were being picked up in the action plan.

Resolved - That Members note the findings of the audit and are assured by the management action being taken.

3619 AUDIT COMMISSION VALUE FOR MONEY PROFILES – The Director of Finance/ Section 151 Officer submitted a report, further to Minute 3545, reminding Members that at the previous meeting of this Committee they were made aware of the Value for Money (VfM) 4 Audit, Performance and Scrutiny Committee 20 September 2011

Profile Tools available through the Audit Commission for fire and rescue authorities (FRA) to use in assessing their performance and spending, whilst comparing those with other FRAs nationally. The Profile Tools currently held data from 2004/5 up to and including 2009/10. The profiles did not provide direct conclusions on achieving value for money, but did help FRAs to better understand their relative spending patterns and prompt questions and identify areas for further investigation. There were also other tools available for FRAs to benchmark and compare costs, effectiveness and performance. Humberside Fire & Rescue Service managers had utilised the Tools previously in drawing up plans in response to the Audit Commission’s report ‘Rising to the Challenge’, which subsequently formed the basis of the recently approved Strategic Plan 2011-14 and Integrated Risk Management Plan 2011-12. Managers would continue to utilise the Tools moving forward as future strategies are developed to further improve the effectiveness and efficiency of the Service. The report provided Members with a broad overview and scope of the VfM Tools and a snap shot overview of HFRS’ comparative positioning across a range of VfM areas as follows:

 Expenditure per 1000 population: Analysis of the current profiles identified that HFA still remains in the upper quartile in terms of overall expenditure per 1000 head of population. The profile identifies that for 2009/10 HFA spent £50,385 per 1000 population compared with an average amongst similar sized combined authorities of £40,336. However HFA spend was now at its lowest figure since the profiles data commenced in 2004/5, when HFA was spending £51,610 per 1000 population that equated to an overall 2.37% reduction, which illustrated that the Authority was going in the right direction. A number of factors influence the spending needs of FRAs and therefore overall spend, for example an Authority’s index of deprivation. HFA had the second highest index of the comparator group. Coastline and the extent of industrial risk (Control of Major Accident Hazard (COMAH) Sites) were also key influences on spend. Another key factor that needed to be considered with HFA costs was the large commitment it made to resource National Resilience assets, such as Mass Decontamination and High Volume Pumping.

 Recurring cashable efficiencies: HFA had delivered 16.02% of cumulative recurring cashable efficiencies since 2004/5 which placed the Authority in the upper quartile of similar sized combined fire authorities, where the median amongst those was 14.2%. However workforce costs remain high, though work was in progress to bring further efficiencies on that aspect with £4.3m savings agreed within the Strategic Plan 2011-14 and current Integrated Risk Management Plan (IRMP).

 Performance: In terms of performance the Authority had shown gradual improvements since 2004/5 with an overall 10.1% reduction in accidental dwelling fires which placed the Authority just below the upper quartile of similar sized combined HFAs, the median value of this group being 10.5%. Whilst deliberate fires within the HFA area had reduced from 2286 in 2004/5 to 968 in 2009/10, HFA still remained firmly in the lower quartile as all other FRAs had also performed well in this area. However, it must be noted that HFA has significantly closed the gap on the other FRAs with an overall 58% reduction compared with average reductions of 39% amongst the other comparator FRAs.

The profile offered a wide range of other detailed information with which to compare HFA efficiency and performance. The Authority would continue to utilise the profiles along with other comparator tools as appropriate in considering strategic planning options moving forward. The full VfM Profile Tool could be accessed through the Audit Commission website – www.audit-commission.gov.uk

A Member referred to paragraph 12 of the report relating to recurring cashable efficiencies and ask for an update with regard to the £4.3m savings agreed within the Strategic Plan 2011-14 and current IRMP. The Chief Fire Officer and Chief Executive stated that the plan was to reduce the establishment by 72 posts and so far 12 staff had left and 5 Audit, Performance and Scrutiny Committee 20 September 2011 there was a further 9 employees considering leaving; the Service had had a look at implementing a new duty system but further work was to be done on that proposal, and that overall the Service was on track to achieve the necessary reductions, and that there was no need for any redundancies in 2011/12.

Resolved - That the report be noted and that Members take assurance that full regard has and will continue to be made of the VfM Profile Tools during strategic planning.

3620 INTERNAL AUDIT REPORT 2010/11 OUTSTANDING RECOMMENDATIONS – The Director of Finance/Section 151 Officer and Secretary/Director of People submitted a report, further to Minute 3549, reminding Members that at the Committee meeting 17 June 2011 the contents of the Internal Audit Annual Report by Deloitte had identified that of the 52 recommendations due for implementation by 31 March 2011:

 25 had been implemented  26 had been partially implemented  1 had not been implemented

Subsequent to the publication of the Internal Audit Annual Report, Board Chairs had reviewed the partial and not implemented recommendations and updated the relevant Risk Registers and associated Action Plans to reflect current progress. To date of the 52 recommendations 37 have now been implemented and 15 remained partially implemented. The recommendation, which had not been actioned previously related to Business Continuity and specifically the Prioritisation of Critical Function Recovery. Following an assessment of the skills required internally to complete that work services had been procured to deliver the short term needs, and also put into place the necessary processes and skills to allow that work to then be continued to be delivered internally. Work had commenced with an external company who were carrying out Business Impact Analyses of the areas covered in the Service Business Continuity Plan and putting processes in place to be followed in the future. That would be then used to prioritise key functions in those plans. A summary of outstanding recommendations was attached at Appendix 1 to the report.

The Independent Member referred to the outstanding recommendations referred to the Operations Board relating to Business Continuity Planning and queried whether there was a timescale for the proposed actions. The Chief Fire Officer and Chief Executive stated that the Business Continuity Plans had been exercised and had been found to be robust and had given managers a great deal of assurance. The Deputy Chief Officer/Director of Operations stated that there was a report going to the Fire Authority on 27 September 2011 and he would look to give a time scale for the process as part of the report to that meeting.

Resolved - (a) That the Committee takes assurance regarding the progress made and measures in place to ensure agreed internal audit outcome action points are reviewed and progressed appropriately, and

(b) that the Committee continues to receive reports as to the progress of any of the agreed internal audit action points, which are not yet complete (which will form part of the Internal Audit follow-up for 2011/12).

INTERNAL AUDIT - H W CONTROLS & ASSURANCE

3621 Internal Audit Monitoring Report - Quarter 2 - H W Controls & Assurance submitted a report, further to Minute 3550, on the progress of the 2011-2012 Internal Audit Plan as set out in Appendix A to the report.

Resolved – That the report be noted.

3622 Procurement Report - H W Controls & Assurance submitted a report indicating that the overall objective of the audit was to provide an opinion on the level of control in place to 6 Audit, Performance and Scrutiny Committee 20 September 2011 manage the risks associated with the procurement system. Overall, based upon the work undertaken, H W Controls & Assurance had given an ‘Adequate’ assurance on the level of control in place to manage the risks associated with the procurement process. The audit had identified weaknesses in controls in relation to the following issues:

 Better use of the Service’s contract register could be made by undertaking an ongoing review of live procurement activity;

 Because the contracts register is not informed by live procurement activity it becomes difficult for the Service to efficiently identify and monitor business critical contracts; and

 There are some gaps in the way that documents are retained. The collation of this documentation is leading to centrally unavailable documentation and/or inefficient use of staff resources.

The report identified 4 areas of good practice and set out the key conclusions of the audit and also the agreed key management actions.

A Member suggested that some of the issues raised by internal audit seemed quite basic and sought assurance that the proposed actions will be carried out. The Director of Finance/Section 151 Officer stated that procurement was a very small function vested in one person and indicated some of the actions that had already been implemented in terms of working with the Yorkshire Purchasing Organisation who may be able to offer better value for money and also advice in respect of bigger contracts.

Resolved - That Members note the findings of the audit and are assured by the management action being taken.

3623 STRATEGIC PLAN AND IRMP 2008-11 PROGRESS REPORT – The Chief Fire Officer/Chief Executive submitted a report, further to Minute 3468, detailing progress against the 2008-11 Strategic and Integrated Risk Management Plan (IRMP) Projects since the previous report to this Committee on 5 April 2011. The report specifically highlighted those projects that could not be completed before the end of the Strategic and IRMP Plan period 2008-11 and the progress of other Strategic Projects commissioned as a result of Decision Conferencing in November 2008.

Resolved - (a)That the report be noted and the Committee takes assurance regarding the progress made and measures in place to ensure Projects are delivered, and

(b) that the Committee continues to receive reports as to the progress of any of the Projects which are not yet complete.

3624 IRMP 2011/12 PROGRESS REPORT - The Deputy Chief Officer/Director of Operations submitted a report outlining progress against the Integrated Risk Management Plan (IRMP) 2011-12. All of the IRMP Projects which were approved by the Authority on 4 March 2011 were subsequently allocated to the Operations Directorate who was given the task of implementing them. Since that time there had been a sustained effort across the Directorate and the Authority could be assured that the IRMP had progressed significantly with six of the eight projects either implemented or nearing completion. The Project to reduce the number of Flexible Duty System (FDS) Officers which was approved by the Authority on 24 June 2011 would be effectively implemented on 1 October 2011. Work on the remaining Projects ‘Review Crewing arrangements for our Technical Rescue Stations’ and ‘Review Retained Duty System (RDS) Contracts to increase the availability of fire engines’ had continued. Further work on those reviews would be reported back to the Authority when they had been completed, and shared with the work force and representative bodies, for approval to progress to implementation. The Project around Technical Rescue Stations was planned as a longer term project. As Members were aware progress against the 2008-11 Strategic and IRMP Projects was reported to this Committee at six monthly 7 Audit, Performance and Scrutiny Committee 20 September 2011 intervals and the same reporting frequency and traffic light style would be adopted for future 2011-12 IRMP updates. The status of the projects which were approved or are being reviewed was as follows:

(a) Project 1 – Change crewing arrangements for all specialist appliances to unit crewing: This project was now complete and therefore the standard crewing arrangement for all specialist appliances is unit crewing. Savings will be realised for the Authority due to the fact that posts will not be replaced as vacancies arise due to retirements or personnel otherwise leaving the Service.

(b) Project 2 – Change the crewing arrangements of the Command Unit: The first part of the project was complete, in that the Command Unit is now unit crewed. The second part of the project is linked to research commissioned by the Operational Assurance Board around Incident Command. When that work is completed the most suitable crewing arrangements will be introduced. This is likely to happen before the time that the vehicle itself is replaced as the Command Unit replacement is not planned until 2018.

(c) Project 3 – Reduce the number of FDS officer: This project was approved by the Authority on 24 June 2011. Over the past year the Service has been operating with a number of staff in temporary FDS positions. This has meant that the implementation, in terms of the reduction in numbers from 44 to 36, has been achieved relatively quickly. From the 1 August 2011 the numbers were reduced down to 37 and by the 1 October 2011, due to further retirements, the final number of 36 will have been achieved. The full implementation of the proposal, which involved FDS officers being rostered onto cover groups determined by specialism, has begun and a number of moves have already taken place. The deadline for this was approved as November 2012, due to the significant specialist training and development required. It is envisaged that the deadline will be met.

(d) Project 4 – Reduce the operational ridership factor: This project is being implemented gradually in line with normal retirements, however, it is effectively complete on the South Bank, and it is expected that the new ridership factor will be introduced on the North Bank by 1 January 2012. Community Protection Unit (CPU) managers are responsible for the utilisation of any surplus staff until the final position is achieved through retirements.

(e) Project 5 – Review crewing arrangements for our Technical Rescue Stations: Work has taken place to engage with staff and Representative Bodies. Clarity on the legal position in terms of the Working Time Directive in relation to similar systems used around the country is being sought. When the full review is complete the outcomes will be reported to the Authority. The potential capital expenditure needed, aligned with the fact that revenue savings will not be made from the salary budget until such a time as retirements have taken place to such an extent that other projects have realised the planned savings, means it is unlikely this will be introduced for at least another year.

(f) Project 6 – Introduce Small Fires Unit: The specification was discussed at the Operational Assurance Board, and it was recommended by the Board that the most economic option was to purchase a vehicle outright as opposed to retro fitting an existing vehicle for the fleet. The specification was subsequently approved by CMT and the vehicle has been procured. It will be crewed by existing staff at no cost whenever it is needed during 2011. Future crewing will be considered in line with other proposals which may release posts, such as the crewing of the technical rescue stations.

8 Audit, Performance and Scrutiny Committee 20 September 2011

A Member asked where the Unit would be located. The Deputy Chief Officer/ Director of Operations stated that the Unit would be located in the Hull area.

(g) Project 7 – Strengthen the management and resourcing of operational risk information: Significant developments in the delivery of the project mean that Mobile Data Terminals (MDT’s) are available on all appliances. Following investment in new software which will be rolled out by the end of October 2011 all MDT’s will be fully integrated with the Control Vision command & control system. This will allow Control to flag up available risk information to crews as soon as they are mobilised to an incident. The software upgrade also includes the introduction of an Automatic Vehicle location (AVL) system and its integration in to the Control Vision system. This will mean that Control will be able to see the exact location of all appliances and FDS Officers in real time and therefore mobilise the quickest resources to incidents. This development will reduce incident attendance times in some cases. Detailed processes are also now in place across the Service for the capture, management and revalidation of operational risk information. However work on the effective resourcing of this work is still to be finalised and we are currently operating with a small central team that has been temporarily seconded from Control. Within the CPU’s there are also resource requirements to help manage the detailed processes now in place to provide up to date and relevant risk information to our operational crews. Some work on the development of roles within CPUs to manage this work has taken place. Any additional human resources identified will be funded and established from existing budgets and/or changes to existing posts as part of wider service efficiency project being undertaken as part of the Services Strategic Plan 2011-14. Our arrangements for the management of operational risk information are also the subject of an internal audit which is due to take place in September 2011.

(h) Project 8 – Review Retained Duty System contracts to increase availability of our fire engines: Marginal Improvements have been made in terms of overall appliance availability, which have so far been realised through changes introduced in consultation with RDS staff and Representative Bodies, without the need to review contracts. Overall RDS availability between 1 April and 31 July 2011 was 93%. The availability of at least one fire engine on each RDS station during the same period was 96.5%. Whilst overall improvements have been around 1% the spread of unavailability has reduced significantly and a small number of fire engines (four) now account for around 60% of total Service wide unavailability. The results of this work to date were summarised in Appendix 1 to the report. The proposal has now been reviewed to determine the need for a Service wide review of RDS contracts and the outcome of that review will be reported to the Authority at the meeting on 27 September 2011.

Resolved - That the report be noted and the Committee takes assurance regarding the progress made and measures in place to ensure projects are delivered.

3625 NEW PERFORMANCE & RISK FRAMEWORK – The Director of Finance/ Section 151 Officer and Secretary/Director of People submitted a report on progress on the integration of the Authority’s processes for performance and risk management in to a single framework, the new framework The framework built upon the existing processes for performance and risk management and provided a holistic approach to addressing under performance, mitigating risk and driving improvement. The framework was shown diagrammatically in Appendix 1 to the report. The new Performance & Risk Framework would be fully implemented within the coming weeks and would provide a common improvement approach for under performance, Service improvement and risk mitigation. The framework would also have regard to the new Board structure, with Boards expected to take ownership of relevant Service level performance indicators and maintain a Board level Risk Register. The Change Board would undertake the role of a Programme Board in the context 9 Audit, Performance and Scrutiny Committee 20 September 2011 of Project Management. The Performance and Risk Board would provide a scrutiny function for Corporate and Board level risks and Service Performance Indicators. The Board had replaced the previous forums known as the Active Risk Team and the Organisational Performance Group. A key aspect of the proposed framework was the integration of the action planning processes for under performance, risk mitigation and Service improvement. The new framework would remove duplication of action planning processes and a single process intrinsically linked to Risk Registers would be used. The workflows for action planning were shown in Appendix 2 to the report. The existing format for risk registers had been refreshed and a new automated approach using the Service’s information portal would vastly improve current approaches to risk creation, risk referral, risk removal and action planning. Similarly recording and monitoring processes for performance management had been refreshed and tailored for local managers using ‘Scorecard’ software. The Secretary/ Director of People stated that the Committee would receive a further report towards the year end on how the Boards were coming together in terms of their effectiveness.

Resolved - That the Committee takes assurance from the report noting the introduction of the single Performance & Risk Framework, which will also include Project Management.

3626 SERVICE PERFORMANCE REPORT FOR THE FIRST QUARTER PERIOD APRIL TO JUNE 2011 - The Chief Fire Officer and Chief Executive submitted a report highlighting the Service’s performance for the period 1 April – 30 June 2011. Contained within the report were the Service’s own Performance Indicators (SPIs), which were underpinned by Local Performance Indicators (LPIs). The report detailed the Service Performance Indicators showing performance of actual against target as set out in the Table below, and previous year performance against this year’s actual, and also included performance against intervention standards as detailed in section 2 of the report. The performance was encouraging regarding “Deliberate primary fires”, which were property fires in dwellings, Commercial properties, and also deliberate fires of all other types. Whilst it was difficult to attribute that to specific prevention activity it did highlight the efforts being made in Community Protection Units (CPUs), particularly against a backdrop of recession during which increases in deliberate fires were normally expected. Performance indicator, “SPI16c – Standard to High Societal Risk Area is met” had been removed from the report and any subsequent reports. An update of the High Societal Risk Map had been produced that used previous year incident data and Technical Fire Safety Audit data. As a result, there was no longer an area of High Societal risk within the HFRS area and therefore the SPI measure was no longer relevant. SPI 2a – Total other Accidental Fires (excluding Vehicles) was currently 18% worse than target. Further detail on that and other indicators performance was contained within the report.

Service Performance Indicator Actual Against Target SPI 1 – Total Number of Automatic Fire Alarms (AFAs) 4% worse than Target SPI 2 – Total Accidental Dwelling Fires 8% better than Target SPI 2a – Total Other Accidental Fires (excluding Vehicles) 18% worse than Target SPI 3 – Total Deliberate Primary Fires 14% better than Target SPI 4 – Total Deliberate Secondary Fires On Target SPI 5 – Total Fatalities 3 fatalities against aspirational Target of zero SPI 8 – Total Injuries 12 injuries against aspirational Target of zero SPI 16a - Standard of First Appliance in Attendance is met 8% better than Target SPI 16b - Standard of Second Appliance in Attendance is met 11% better than Target

The Independent Member sought clarification regarding the statement that ‘there was no longer an area of High Societal Risk within the HFRS area’ given the existence of the Tower Blocks on the Orchard Park housing estate, Hull. The Deputy Chief Officer/Director of Operations explained that the Tower Blocks were not classified because of their type of construction and the fire prevention facilities incorporated in the premises. The Chief Fire Officer and Chief Executive stated that the Tower Blocks were taken account of in that they were classified as being in an area of high risk. 10 Audit, Performance and Scrutiny Committee 20 September 2011

Resolved - That the Committee notes the report’s detail and takes assurance from the Service’s proactive approach to performance management. 3627 STRESS SURVEY AND ABSENCE UPDATE - The Secretary/Director of People submitted a report, further to Minutes 3559 and 3560, reminding Members that when the results of the 2010 Stress Survey were reported to the previous meeting of the Committee Members had asked for further information to be provided at this meeting regarding absence due to stress. The report provided statistical information and commentary regarding sickness levels in the Service due to stress, anxiety and depression. Overall absence was addressed in a separate report on the Agenda for this meeting (Minute 3628 below refers). Attendance management remained a key issue for the Service in terms of improving both organisational performance and employee well-being. The means of achieving this included support to managers in applying the Service’s Attendance Management Procedure and the Positive Mental Health Policy. In Humberside Fire and Rescue Service (HFRS), the main reasons for absence were consistent with recent national data, being musculoskeletal disorders primarily followed by mental health issues. National statistics for 2010/11 (HSE/ Chartered Institute of Personnel and Development) showed that 40% of total working days absence was due to stress, anxiety and depression. The corresponding figure for HFRS was 30%. There were 37 cases in total (2.7% of the workforce) and the average total days’ length of absence was 69.5 days. Absence relating to stress, anxiety and depression in HFRS clearly fluctuates and had diminished over the last 6 months, mainly due to a small number of complex cases with significant levels of absence being resolved and returns to work supported. Absence data in the Service for 2010/11 specifically relating to absence due to stress, anxiety and depression was shown in the Appendix 1 to the report. Using that data it could be reported that the support staff group proportionally had had a higher number of days lost per person than operational personnel. Work was underway to compare HFRS data with that for other fire and rescue services in the region. Only limited information was available at present and full details would be reported to this Committee when available. In terms of management and support the Service’s policies and processes for managing absence were consistent with best practice as reflected in the Chartered Institute of Personnel and Development (CIPD) and HSE report on absence management. Wellbeing policies and health promotion, both physical and mental, were recognised as effective in reducing long term absence. The report identified a range of arrangements and initiatives already in place and being built upon. A separate report would be submitted to the next meeting with further analysis of the stress survey and cultural audit results.

The Independent Member referred to the statement that there were 8 cases where absence lasted over 3 months and queried whether that was usual within the Fire Service. The Secretary/Director of People stated that it was difficult to make comparisons with other Services and that the figures mentioned in the report showed a peak in 2009/10. The Secretary/Director of People stated that in due course Members would need a further level of assurance and Officers will draw on comparators where appropriate with other Fire Services, Unitary Councils and nationally. The Independent Member asked whether any cases had translated into Court action against the Authority. The Secretary/Director of People reminded Members that he had previously undertaken to produce regular reports to this Committee in respect to current cases and that health cases were dealt with by the Authority’s Insurers. The Independent Member commented at the high level of absence among support staff compared to operational staff. The Secretary/Director of People stated that for the next report officers would try to un-pick some of the cases of stress, anxiety and depression in order to outline causes. The Independent Member asked if officers had noticed any increase in stress cases as a result of the recruitment freeze. The Secretary/Director of People stated that it was a little too early too assess and referred Members to the part-year projection within the report; and also stated that that it was important that the Authority have the welfare measures in place to reduce the impact of stress. Members expressed their thanks to the Occupational Health Manager for an excellent report.

Resolved - (a) That the report be noted; and

11 Audit, Performance and Scrutiny Committee 20 September 2011

(b) that Members take assurance from the approach adopted to effectively manage and reduce workforce sickness levels including the development of an action plan aimed at continuing the trend of managing down sickness absence. 3628 SICKNESS ABSENCE – UPDATE - FIRST QUARTER 2011-12- The Secretary/ Director of People submitted a report, further to Minute 3560, providing the first quarter of 2011-12 (April-June 2011) summary of sickness absence data along with brief commentary on that and sickness absence information more generally. Attendance management remained a key issue for the Service in terms of improving both organisational performance and employee well-being. The means of achieving that included support to managers in applying the Service’s Attendance Management Procedure and the Positive Mental Health policy. More detailed information on absence relating to stress anxiety and depression was included in a separate report on the Agenda for this meeting (Minute 3627 above refers).Detailed information on national sickness absence levels and trends had been included in previous reports to the Committee and were not repeated. However, latest headline figures (CBI/Pfizer report for 2010/11) indicate an average of 6.5 days absence per employee across all sectors (private sector 5.9 days, public sector 8.1 days average per employee). The corresponding figure for Humberside Fire and Rescue Service (HFRS) in 2010/11 was 6.0 working days per employee. The 2011/12 year-end report on sickness absence would again report national and regional comparative information more fully. HFRS data for the first quarter of 2011/12, by employee groups, was shown in Appendix 1 to the report. Also shown were projected figures for average working days absence for the full year based on an extrapolation of the first quarter figures compared with actual figures for 2010/11. The projected figures had to be viewed with caution as sickness levels were likely to fluctuate throughout the year. The picture would become clearer through further quarterly updates. Comparable first quarter information for other local authorities and fire authorities in the region was not readily available although work would continue to identify whether part- year information could be obtained for future reports. Similarly, as HFRS information had only been reported on an annual basis previously, first quarter information for previous years was not available. Members were reminded that fuller benchmarking information was provided in the year end sickness absence update report. In HFRS, the main reasons for absence were consistent with recent national data, being musculoskeletal disorders primarily (48% of all absence in HFRS), followed by mental health issues (stress, anxiety and depression) (30% of all absence in HFRS). Educational health promotion material was being developed and sourced around proactively preventing, or enabling individuals to effectively manage existing, musculoskeletal health issues. Further work would include a review of manual handling training provision in addition to risk assessments in the workplace. Initiatives regarding mental health issues are covered in the separate report on the Agenda for this meeting referred to above. A broader action plan was being developed by the People Board through the Attendance Management Improvement Sub-Board and would be available later in 2011. That would be aimed at continuing the trend of managing down sickness absence and would include, for example, further training for managers in attendance management.

The Independent Member referred to the number of day’s absence per employee and asked whether the statistics were examined to see whether there were any trends in the absences. The Secretary/Director of People stated that the Authority had an Absence Management group, which reported through the People Board. The next report to this Committee would identify any trends.

Resolved – (a) That the report be noted, and

(b) that Members take assurance from the approach adopted to effectively manage and reduce workforce sickness levels including the development of an action plan aimed at continuing the trend of managing down sickness absence.

3629 TESTING OF OPERATIONAL EQUIPMENT – The Deputy Chief Officer/Director of Operations submitted a report updating Members on the testing arrangements for 13.5m ladders and also covering the broader testing regime of operational equipment. In relation to 12 Audit, Performance and Scrutiny Committee 20 September 2011 the interim programme of testing all the ladders within the Service were immediately tested on station in line with the procedures described in the report. In addition all of the ladders of the same type, and also ladders of a similar construction, within HFRS were subject to a more detailed visual inspection by certified engineers from Technical Services over a very short time period. This meant that in total 81 ladders were subject to the further detailed visual inspection. That required significant work, and rescheduling of other planned services, both by station based personnel and Technical Services to ensure that all possible steps were taken to identify, and minimise, any risk to HFRS personnel. Those inspections resulted in 5 ladders failing, but that was broadly in line with the numbers of failures which would have been expected in a normal programme of annual testing. The testing carried out by the Service was in excess of the testing which was required by the relevant standard, BS EN 1147, in that the standard only required testing to be carried out quarterly and annually. Over and above that requirement the Service also tested ladders on acceptance, which was carried out any time a ladder was received by a station even if it had been previously tested at another station, after a period of use such as during training, and after any operational use at incidents. Also the criteria by which a ladder is deemed to have failed a test was determined to allow for a suitable safety margin between tests to ensure the ladder is repaired or replaced before any deficiencies identified during testing would allow a dangerous situation to occur. An example of a standard test is attached at Appendix 1 to the report. A review of this procedure would be undertaken when an investigation into the failure of a 13.5 m ladder in West Yorkshire Fire and Rescue Service that resulted in the injury of a number of Firefighters had been concluded and reported upon.

Resolved - That Members take assurance from the testing procedures in place for operational equipment.

3630 CORPORATE RISK/OPPORTUNITY MANAGEMENT – The Secretary/Director of People submitted a report reminding Members that the Authority’s performance and risk management processes had now been combined in to a single framework. The existing format for risk registers had been refreshed and a new automated approach using the Service’s information portal would be used, which would vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning. Risk/opportunity was managed at four levels; Corporate, Board, Directorate/CPU and Project. A number of risks that previously featured on the Strategic Risk Register had now been referred to Board level. Two Corporate level risks/opportunities remained on the Strategic Risk Register. Those risks were summarised in Appendix 1 to the report and the Board level red risks were summarised in Appendix 2. The Strategic Risk Register was available on the Authority’s website at www.humbersidefire.gov.uk. Members were asked to review the Strategic Risk Register and the Board level red risks to provide an assurance that Members consider that the Registers properly reflects the key issues facing the Authority. In addition, further assurance could be taken from the role of the Performance & Risk Board and the reporting of Corporate and Board level risks. Also through the Committee structure (particularly this Committee), Members should be satisfied that the Action Plans are effective and appropriate steps are being taken to further embed and resource corporate risk management. Members are also asked to use the Risk Registers as a tool to drive (in part) the agenda and discussions at Committee meetings.

Resolved – That the content of the report be noted and that Members are assured by the progress made in the effective use of risk management.

Meeting closed at 12.32pm

13 Audit, Performance and Scrutiny Committee 20 September 2011

14 Agenda Item No. 8

Humberside Fire Authority Report by the 27 September 2011 Chief Fire Officer & Chief Executive

EXECUTIVE REPORT

INTRODUCTION

This executive report is aimed at updating members on a range of issues. It is felt that with further explanation at the meeting, the issues covered in this report do not warrant a separate paper. Members are asked to note the content of this report.

REPORT DETAIL

1. IRMP 2012/13

Members will recall that in March 2011 they approved a number of initiatives that will lead to a reduction in the wholetime duty system (WDS) establishment of 72 posts. Without compromising operational efficiency this reduction of establishment is taking place progressively resulting in a number of supernumerary staff being in place throughout 2012.

Members also asked for additional work to be undertaken on the rescue station duty system (Residential Self Rostering), which would include further discussions with the FBU before that proposal is confirmed by the Authority. CMT regard the application of different duty systems to rescue stations only, as being too restrictive and have therefore widened the scope of this work to include all stations. Members should be assured that CMT are not seeking any more reductions in the establishment than those proposed in IRMP 2011/12, just alternative ways of achieving that number. As these personnel are unlikely to exit the Service before the end of 2013 and the budget forecasts remain positive it is not necessary to seek further WDS staff reductions in 2012.

CMT have therefore proposed that the risk profile in the Humberside area is re- assessed to establish that there has been no significant change of risk since the previous IRMP. Once this is confirmed the 2012/13 IRMP will be produced as a refreshed and refined version of the current IRMP.

2. LINKS WITH THE ARMED FORCES

HFRS was approached by Territorial Army officers from Londsborough Barracks to discuss the feasibility of our Service assisting them with their Junior NCO training. The aim of this training was to provide the NCOs with new challenges that would help prepare them for operations in the field. Following discussions the HFRS Training Section were able to offer a day of varied activities which included the following elements:-

 Hose running and water deployment exercises  Manual dexterity tests  Casualty evacuation from confined spaces  RTC scenarios which included casualty assent and care  Confined space obstacle course.

Over 30 NCOs participated on Sunday, 31st July and their feedback included that received from senior officers was very positive.

35 The Territorial Army has reciprocated by officering a training day for HFRS personnel later in the year.

These activities are helping to cement a sound relationship with local armed forces which includes the provision of a heavy rescue training venue at Leconfield and quad bike training for our Technical Reserve personnel. This is yet another example of creative partnership working and demonstrates real support for our local armed forces.

3. INTERNATIONAL FIREFIGHTERS’ CHALLENGE

Humberside Fire and Rescue Service has enjoyed a long relationship with the Bremerhaven Fire Service as a result of twinning of Bremerhaven and Grimsby. During the 2009 twinning visit an invitation was received from the Szczecin Fire Service (also twinned with Bremerhaven) to visit Poland for an International Firefighters Challenge. The aim of this challenge was to strengthen international relationships and to share best practice.

Jacek Slaskiewiez the CFO of Szczecin formally invited Humberside FRS to participate in the Challenge which was to take place over the week-end of 13th and 14th August 2011. Six firefighters and junior officers from Humberside volunteered to participate and took part in the following activities:-

 Equipment carry  Hose lift  Break in  Hose pull  Casualty evacuation  Operational relay.

The event was well attended and truly international with teams from New Zealand, the former Soviet bloc states and a range of European countries.

Whilst our team trained hard for the event they were unable to secure a medal position which indicates the high caliber of this competition. Such events promote the image of our Service and contribute to the maintenance of morale amongst staff.

4. MIRG UPDATE

Despite significant contributions to consultation from the fire sector including the Chief Fire Officers’ Association, discussions nationally involving HFRS and the favourable findings of the Transport Select Committee, the Maritime & Coastguard Agency have restated their intention to remove funding for the Marine Incident Response Group as they feel it is not needed as a control measure for fires aboard vessels at sea. They believe that provision is adequately covered by the resources and crews on-board vessels, and they are also of the opinion that the initial response of 12 firefighters is excessive and indicates a risk averse approach to firefighting. (Members will be aware that HFRS will normally mobilise 13 firefighters to house fires when persons are reported.). It is the opinion of HFRS that the removal of MIRG is not a suitable approach, and specifically not one which will adequately mitigate the risk to life, as well as the economic and environmental risks associated with a serious vessel fire off the East Coast. Currently HFRS has 46 personnel, all volunteers, who have undergone intensive training since 2006 and can be airborne to an incident at sea within an hour. HFRS is now the only local MIRG responder and our personnel cover the coast from the Wash up to the River Tyne. This also means that we have an excellent response capability for incidents in the Humber Estuary. Whilst the Service is of the opinion that this response is vital, and in fact one of our officers is the Deputy Lead for MIRG nationally, we also agree with the Transport Select Committee that this is a matter of national resilience and that the cost should not be borne solely by the communities in our area. The savings which the MCA will

36 make by removing this capability are only £380k, however, the fact that many of our volunteers do so because they are part of a key national arrangement with the associated training and operational back up that comes with that arrangement also means that even if the money could be found to cover the shortfall the response is still likely to be adversely affected. In order to influence discussions at Government level HFRS have written to all the MPs in the Service area to request they lobby for the retention of MIRG on our behalf

5. FIRE SAFER CIGARETTES – UPDATE FROM CHIEF FIRE & RESCUE ADVISER (CFRA)

Following publication of both the CEN and BSI standard, officers from the Chief Fire and Rescue Adviser’s Unit (CFRAU) have continued to meet with the main UK tobacco manufacturers (British American Tobacco, Japanese Tobacco International, Imperial Tobacco and Philip Morris Ltd) to ensure they have in hand plans to comply with the Standard. It is clear that the industry is taking the responsibility to comply with the Standard very seriously and is on track to deliver compliance for all cigarette products at point of manufacture in advance of the publication of the Reference Standard on 17 November 2011.

However, the tobacco industry have advised that although every effort would be made to ensure there is “sell through” of product lines before the Reference Standard takes effect, it may not be possible to guarantee all retailers stock would be compliant by the date of the Reference date. The industry is therefore working with their sales teams to inform retailers of the incoming standard, and the importance of ensuring that as much non-compliant stock is sold through by 17 November. The industry expects to have achieved a complete sell through of non-compliant products by the end of summer 2012.

The Business of Innovation and Skills’ (BIS) standard practice is to communicate the existence of new standards through the Trading Standards Interlink to Local Authority Trading Standards departments on the date they take effect. This will confirm the UK Government’s expectation that all cigarettes sold in the UK and EU will comply with the new safety standard.

BIS will not instruct nor expect Trading Standards to enforce the standard; it will be a matter for local Trading Standards to determine their role in any monitoring and enforcement activity. However, based on discussions with the tobacco industry, non- compliance is not expected to be an issue.

6. BLUE LIGHTS PROJECT

Members will recall that as a part of the 2008 IRMP officers were instructed to work with the Police and with Citysafe to acquire joint city centre premises through a project known as the “Blue Lights Project”. The aim of this was to secure a 24hour fire and rescue presence in the centre of Hull and to promote better joint working, particularly in terms of community safety.

The project progressed slowly but ultimately led to an acceptable proposal for a new- build joint facility on Francis Street, Hull. As investment in Hull Central Fire Station was kept to a minimum pending replacement, conditions for fire crews were gradually deteriorating therefore a fallback plan was developed which involved the refurbishment of Hull Central Fire Station. Finding themselves in a similar situation the Police also made fallback arrangements.

Due to the extreme funding pressures being experienced by much of the public sector Hull City Council, the major partner in the project, has been unable to fund the project without grant-aid which has not been forthcoming. The Blue Lights Project has therefore been terminated and will be officially wound up at a meeting scheduled for 18th October 2011.

37

As HFRS are no longer committed to the Francis Street site the possibility of merging Hull Central Fire Station and Hull North Fire Station (which is also in very poor condition) was investigated but was proven to be impracticable as the service would be unable to meet its response standards.

Because the Worship Street site (Hull Central, administrative buildings and workshops) is in poor condition and is too large for our needs preliminary discussions are being had with Hull City Council to establish the feasibility of exchanging Worship Street for a smaller site in a better location. If these discussions are unsuccessful Hull Central Fire Station will be radically refurbished. In the meantime CMT intend to redevelop Hull North Fire Station as a matter of urgency and to acquire workshop premises in a suitable location. All such proposals will be brought before Members for consideration and approval.

7. AMENDMENTS TO FIREFIGHTERS’ PENSION SCHEME (1992) AND THE NEW FIREFIGHTERS’ PENSION SCHEME (2006) – CONSULTATION

Lord Hutton’s final report on public sector pensions was published on 10th March 2011. In that report he made it clear that change is needed to make public sector pension schemes simpler and more transparent and fairer to those on low and moderate earnings.

Lord Hutton set out 27 recommendations for public sector pension reform, including protection of accrued rights, the retention of a form of defined benefit and the fairer sharing of risk between taxpayers and scheme members.

The Government set out its approach to taking forward the proposed reforms to the firefighters’ pension scheme in July 2011 and will publish a separate consultation on the proposed 2012-13 increase in employee contribution rates shortly.

This consultation therefore applies to proposed changes to both of the fire service pension schemes each of which has already been subject to discussion at the Firefighters’ Pension Committee. The following changes to the scheme are the subject of this consultation.

 Rule A14: Compulsory retirement on grounds of efficiency – remove rule.  Changes to indexation of additional pension benefits – to the Consumer Prices Index  Commutation – discretion to permit the maximum payment  Pensionable pay – definition  Age discrimination – contributions holiday  Medical appeals – power to review decisions  Appeals on non-medical issues – appeal to Pensions Ombudsman  Withdrawal of pension whilst employed by a fire and rescue authority (abatement)  Pensions tax-alignment with tax legislation  Other, technical amendments (including the updating of statutory references).

Members will be aware that the proposals outlined above are but a part of wider pension reform within the Fire and Rescue Service and the wider public sector. These particular proposals will enhance the management of the Firefighters Pension Scheme and if approved should provide the service with the option of offering early retirement without negative financial consequences to the scheme or its members.

The closing date for responses to the consultation is 26 October 2011 and members who wish to view the full consultation document may obtain a copy from the Authority Secretary.

38 8. SINGLE FIRE AND RESCUE SERVICE IN SCOTLAND

Earlier this month Scotland’s First Minister, Alex Salmond, announced the Police and Fire Reform Bill which will establish single services in Scotland. The Bill will be introduced in April 2012 and at Stage 1 of that Bill, the Scottish Government will move to appoint the Chair and members of the new Scottish Fire and Rescue Board. A Chief Officer should be appointed by December of that year. The target date for the new Service taking effect is April 2013 although civil servants accept that this deadline may slip by two or three months.

Whilst this proposal has no immediate effect on English Fire and Rescue Services it may prove to be an interesting prototype for a more efficient Fire and Rescue Service. It will also be interesting to contrast this approach with the emerging move towards localism in England.

9. THE FUTURE OF THE FIRE SERVICE COLLEGE

The Fire Futures report indicated a service-wide support for the maintenance of the Fire Service College. It did however acknowledge that the current business model was ineffective and unsustainable.

The Government has therefore embarked on pre-market engagement on future options for the Fire Service College. The purpose for this engagement is to inform its view of sector appetite and viable options for the future with the aim of delivering a new model for the Fire Service College.

The Government’s preferred option for a Fire Service College of the future is a partnership between the public and private sectors with the fire sector playing a key role in that partnership. They are seeking views and ideas on arrangements that would best secure the future of the College and offer best value for the public purse. Those options may be wide- ranging and should challenge how college assets are used, training delivery models and whether training could be delivered by other organisations.

This first phase of engagement closes on 31st October 2011 and Members can be assured that HFRS will offer its views on the future of this unique and valuable national asset.

R HANNIGAN

Officer Contact: Richard Hannigan  01482 567417 Chief Fire Officer & Chief Executive

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

39

40

Annual governance report Humberside Fire Authority Audit 2010/11 41

Audit Commission Annual governance report 1

Contents

Key messages 3 Audit opinion and financial statements 3 Value for money 3

Before I complete my audit 4

Financial statements 5 Opinion on the financial statements 5 Errors in the financial statements 5 42 Value for money 12

Appendix 1 – Draft audit report 14

Appendix 2 – Amendments to the draft financial statements 17

Appendix 3 – Action plan 23

Appendix 4 – Glossary 26

Traffic light explanation Red Amber Green

Audit Commission Annual governance report 2

Key messages

This report summarises the findings from the 2010/11 audit which is substantially complete. It includes the messages arising from my audit of your financial statements and the results of the work I have undertaken to assess your arrangements to secure value for money in your use of resources.

Our findings Value for money Unqualified audit opinion I plan to issue an unqualified value for money conclusion stating that

43 you put in place proper arrangements to secure economy, efficiency Proper arrangements to secure value for money and effectiveness in your use of resource.

Audit opinion and financial statements I plan to issue an unqualified opinion on the completion of my work.

Audit Commission Annual governance report 3

Before I complete my audit

I confirm to you My report includes only matters of governance interest that have come to my attention in performing my audit. My audit is not designed to identify all matters that might be relevant to you. Independence I can confirm that I have complied with the Auditing Practices Board's ethical standards for auditors, including ES 1 (revised) - Integrity, Objectivity and Independence. I can also confirm there were no relationships resulting in a threat to independence, objectivity and integrity. The Audit Commission's Audit Practice has not undertaken any non-audit work for the Fire Authority during 2010/11.

44 I ask you to confirm to me I ask the Audit, Performance and Scrutiny Committee and the Fire Authority to: ■ take note of the adjustments to the financial statements which are set out in this report (Appendix 2); ■ approve the letter of representation, provided alongside this report, on behalf of the Fire Authority before I issue my opinion and conclusion; and ■ agree your response to the proposed action plan (Appendix 3).

Audit Commission Annual governance report 4

Financial statements

I plan to issue an unqualified opinion on the financial statements on completion of my work. A number of errors were identified in the accounts and these have been amended by management.

Opinion on the financial statements Subject to satisfactory clearance of outstanding matters, I plan to issue an audit report including an unqualified opinion on the financial statements. Appendix 1 contains a copy of my draft report.

Errors in the financial statements The financial statements included a number of errors which were corrected by management following the audit. Some of these could have been 45 avoided by improving quality control procedures when the accounts are prepared. Appendix 2 includes a detailed breakdown of these errors, the key changes made to the accounts are summarised below:

Employers contributions to the Firefighters pension scheme included within cost of services – as part of the IAS 19 accounting treatment of pensions, the actual employer contributions to the pension scheme should be removed from the cost of services and replaced by the necessary IAS 19 transactions. Employer contributions to the Firefighters pension scheme totalled £4,372k; however, only £2,351k had been removed from the cost of services lines. This resulted in the expenditure reported in the Comprehensive Income and Expenditure Statement (CIES) being overstated by £2,021k. The error was due to the incorrect figure for employers contributions being identified.

Impairment losses and revaluation gains on Headquarters and Goole – the impairments charges included within the draft statement of accounts for the Headquarters building were incorrect as they were based on the value in the draft valuers report. The impairment charge for the Headquarters building was overstated by £1,120k, Impairments in the first instance are charged to any balance held in the revaluation reserve for that asset, and the remainder charged as an expense to the CIES. The impact of the error was that expenditure in the CIES had been overstated by £745k and the revaluation reserve had been reduced by £375k too much. For Goole Fire Station the revaluation gain recorded within the accounts was understated by £93k. This meant that the revaluation reserve was understated by £93k. Both these errors taken together resulted in non current assets in the balance sheet being understated by £1,213k.

Audit Commission Annual governance report 5

New Dimension Assets –final guidance on the treatment of these items had not been received when the accounts were prepared and they were initially accounted for as donations received on 1 April 2010 (the date of the signed agreement with the Department of Communities and Local Government (CLG). However, guidance was issued in August 2011 to suggest that these assets should be recognised at the date that they were made available for use, which in your case was in 2006/7 and 2007/8. As such a Prior Period Adjustment was required to bring the assets on to your balance sheet at an earlier date and remove income credited to the CIES in 2010/11. Adjustments were also required to the Capital Adjustment Account. New Dimension assets were valued at £1,241k when transferred from CLG. Injury Awards under IAS 19 – the move to IAS 19 in 2010/11 changed the accounting treatment of injury awards. Previously the liability for such awards was not recognised in your balance sheet unless there was an actual award payment in that year. Under IAS 19 injury award schemes that involve payments based on length of service should have the liability recognised as and when services are rendered rather than when an injury event occurs. Your accounts have been amended to increase the Pension Liability and Pension Reserve in the Balance Sheet by £24.6m and reflect an increase of income in the CIES of £1.07m. Note 2 Statement of Movement on the General Fund Balance – the format of this note had changed with the move to International Financial Reporting Standards (IFRS). In the initial draft accounts the note included movements on both the General Reserve and Pension Reserve. The inclusion of the Pension Reserve movements totalling £24,416k meant it was not clear how the note linked to the Movement in Reserves Statement. The note was amended to include separate statements: one for the movement on the General Reserve; and one for the movement on the Pension Fund. 46 Cashflow Statement – the cashflow statement and supporting notes included within the draft accounts was prepared incorrectly with errors in a number of figures and inconsistency with the CIES. The cashflow statement had to be amended on a number of occasions to reflect other changes which were agreed during the audit.

Recommendations

R1 Members of the Audit, Performance and Scrutiny Committee should note the changes made to the financial statements which have been agreed with management.

Audit Commission Annual governance report 6

Financial statements

The Fire Authority’s financial statements and annual governance statement are important means by which the Fire Authority accounts for its stewardship of public funds. As Fire Authority members you have final responsibility for these statements. It is important that you consider my findings before you adopt the financial statements and the annual governance statement.

In planning my audit I identified specific risks and areas of judgement that I have considered as part of my audit.

Key audit risk and our findings

Key audit risk Finding

47 International Financial Reporting Standards The Fire Authority is to produce financial statements under I found that you had put in appropriate arrangements to manage the move to IFRS. International Financial Reporting Standards (IFRS) for the Arrangements included the engagement of specific support to supplement work first time for 2010/11. This is a significant change in carried out by Finance staff. A project plan was prepared and regular reports made to reporting arrangements and I undertook audit procedures to the Audit, Performance and Scrutiny Committee and the Fire Authority. My initial work understand how management has sought to deal with this on the prior year restated accounts identified some minor areas for attention and these risk and prevent material misstatement. This substantive were addressed. My work on the 2010/11 financial statements also identified some testing of the re-stated comparator balances to ensure these areas for improved disclosure and these are addressed elsewhere in this report. comply with the international standards and present a true and fair view.

Audit Commission Annual governance report 7

Financial statements

Significant weaknesses in internal control

Following my initial audit visits I identified a number of weaknesses in the Fire Authority’s internal control arrangements. These weaknesses, identified in walk through testing, were reported to management and the Audit, Performance and Scrutiny Committee in an Interim Governance Report in June 2011. Action was agreed to address these weaknesses and they are not replicated here. During the course of my detailed audit testing I identified some failures in the operation of two key controls for pension and payroll payments. The control failures are detailed below. I have carried out additional audit procedures to ensure that the failure in control did not have an adverse effect on my audit opinion. These weaknesses are only those I identified during the course of the audit that are relevant to preparing the financial statements. I am not expressing an opinion on the overall effectiveness of internal control.

48 Internal control issues and our findings

Description of weakness Potential effect Management action

Firefighters' Pensions – Life certificate check Pensions may be being paid to pensioners who are During 2010/11 pensioners were sent a life were outstanding for 8 pensioners during the deceased. certificate check to ensure that payments year. The pensions for these pensioner were appropriate. From a total of 730, remained in payment and at the time of audit 8 returns were outstanding at the end of there had been no follow up since 2010/11 despite attempts to chase them January 2011. up. Further action will now be taken including, where appropriate, the cessation of payments. Payroll Timesheet/monthly return Staff may be being paid for additional allowance that The payroll provider has been contacted authorisation – testing of 20 timesheets they are not entitled to if payment is not certified. and the requirement to ensure all identified one where it had not been signed as timesheets are appropriately authorised certified for payment and had been by payroll. has been reiterated.

Audit Commission Annual governance report 8

Recommendations

R2 Life certificates checks should be followed up in a more timely manner.

R3 All timesheets and monthly returns should be signed as certified for payment by an appropriate member of staff.

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Financial statements

Quality of your financial statements

I consider aspects of your accounting practices, accounting policies, accounting estimates and financial statements disclosures. I consider aspects of your accounting practices, accounting policies, accounting estimates and financial statement disclosures. I have identified a number of points in Appendix 2 - which I have categorised as quality issues.

Accounting practices, policies, estimates and financial closures

Issue Findings and recommendations

Quality assurance A number of changes to the draft financial statements have been agreed. Some of these

50 I have detailed in appendix 2 all the changes which could have been prevented if a more robust quality assurance process had been put in place have been agreed to the Fire Authority accounts to review the draft accounts before they were presented to the Audit, Performance and Scrutiny Committee and the Fire Authority

I have also detailed in appendix 2 an amendment to During the audit we noted that a draft valuers report had been used to complete the the financial statements due to the draft rather than valuation of land and buildings in the balance sheet and supporting notes. Subsequently, a final valuers report being used for the preparation of final version of the valuers report was received which significantly revised the valuation of the accounts some buildings held by the Fire Authority received. This could have been avoided by ensuring that the report issued was a final version and suitable for use in the preparation of the accounts.

Recommendation

R4 A robust quality control procedure should be included in the final accounts preparation timetable.

R5 Ensure all reports from experts are final versions.

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Significant difficulties encountered during the audit I have encountered no significant difficulties during the audit. Officers have responded positively and promptly to queries raised and provided necessary supporting documentation. Significant matters that were discussed or subject to correspondence with management During the final accounts audit I have been engaged in detailed discussions with management on treatment for the new dimension assets.

Other significant matters relevant to the reporting process The Authority requests a related party and interest disclosure from officers and members as part of year end processes. A complete set of returns have not been obtained which means that there is a risk that the disclosure in the accounts is not complete. I have therefore included a comment on this in the draft letter of representation.

Recommendation

51 R6 The Authority should ensure arrangements are in place to obtain a full set of related party disclosure returns.

Letter of representation

Before I issue my opinion, auditing standards require me to ask you and management for written representations about your financial statements and governance arrangements.

I will supply a model letter of representation in a separate document.

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Value for money

I am required to conclude whether the Fire Authority put in place proper corporate arrangements for securing economy, efficiency and effectiveness in its use of resources. This is known as the value for money conclusion.

I assess your arrangements to secure economy, efficiency and effectiveness in your use of resources using criteria specified by the Audit Commission. My conclusions for the two areas highlighted for specific attention by the Audit Commission in 2010/11 are set out below. I intend to issue an unqualified conclusion stating that you had put in place proper arrangements to secure economy, efficiency and effectiveness in your use of resources. 52 Value for money criteria and our findings

Criterion Findings

1. Financial resilience The Authority has clearly shown the challenges faced and has identified the levels of The organisation has proper arrangements in savings required and means by which they can be achieved. Financial impact forms part of place to secure financial resilience. key business decisions. Members have been involved in business planning processes throughout 2010/11 leading to the discussion on and agreement of the IRMP and strategic Focus for 2010/11: plan for 2011/12. The Authority has developed a future reserves strategy. Expenditure in The organisation has robust systems and processes 2010/11 has again been within budget. to manage effectively financial risks and opportunities,

and to secure a stable financial position that enables it to continue to operate for the foreseeable future.

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Criterion Findings 2. Securing economy efficiency and effectiveness In preparing the IRMP and strategic plan for 2011/12 there is evidence that the Fire Authority The organisation has proper arrangements for has been reviewing the services provided and looking for ways to improve efficiency without challenging how it secures economy, efficiency cutting front line services. There is evidence of understanding which savings have longer and effectiveness. term impact and a clear understanding of the long term impact of government funding changes on the fire authority. The Fire Authority has entered into consultation with others Focus for 2010/11: and entered into discussion on collaborative arrangements. The Fire Authority also produces The organisation is prioritising its resources within regular and detailed performance management reporting. tighter budgets, for example by achieving cost reductions and by improving efficiency and productivity.

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Appendix 1 – Draft audit report

HUMBERSIDE FIRE AUTHORITY

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HUMBERSIDE FIRE AUTHORITY

Opinion on the Authority and Pension Fund accounting statements

I have audited the accounting statements and the firefighters’ pension fund accounting statements of Humberside Fire Authority for the year ended 31 March 2011 under the Audit Commission Act 1998. The accounting statements comprise the Movement in Reserves Statement, the Comprehensive Income and Expenditure Statement, the Balance Sheet, the Cash Flow Statement and the related notes. The firefighters’ pension fund accounting statements comprise the Fund Account, the Net Assets Statement and the related notes. These accounting statements have been prepared under the accounting policies set out in the Statement of Accounting Policies.

54 This report is made solely to the members of Humberside Fire Authority in accordance with Part II of the Audit Commission Act 1998 and for no other purpose, as set out in paragraph 48 of the Statement of Responsibilities of Auditors and Audited Bodies published by the Audit Commission in March 2010.

Respective responsibilities of the Director of Finance and auditor

As explained more fully in the Statement of the Director of Finance Responsibilities, the Director of Finance is responsible for the preparation of the Authority’s Statement of Accounts, including the firefighters’ pension fund accounting statements, in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom. My responsibility is to audit the accounting statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require me to comply with the Auditing Practice’s Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the accounting statements sufficient to give reasonable assurance that the accounting statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Authority and Pension Fund’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Authority and the Pension Fund; and the overall presentation of the accounting statements. I read all the information in the explanatory foreword to identify material inconsistencies with the audited accounting statements. If I become aware of any apparent material misstatements or inconsistencies I consider the implications for my report.

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Opinion on accounting statements

In my opinion the accounting statements: ■ give a true and fair view of the state of Humberside Fire Authority’s affairs as at 31 March 2011 and of its income and expenditure for the year then ended; ■ give a true and fair view of the financial transactions of the firefighters’ pension fund during the year ended 31 March 2011 and the amount and disposition of the fund’s assets and liabilities as at 31 March 2011, other than liabilities to pay pensions and other benefits after the end of the scheme year; and ■ have been properly prepared in accordance with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom.

Opinion on other matters

In my opinion, the information given in the explanatory foreword for the financial year for which the accounting statements are prepared is consistent with the accounting statements.

Matters on which I report by exception

I have nothing to report in respect of the governance statement on which I report to you if, in my opinion the governance statement does not reflect 55 compliance with ‘Delivering Good Governance in Local Government: a Framework’ published by CIPFA/SOLACE in June 2007.

Conclusion on Authority’s arrangements for securing economy, efficiency and effectiveness in the use of resources

Authority’s responsibilities

The Authority is responsible for putting in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources, to ensure proper stewardship and governance, and to review regularly the adequacy and effectiveness of these arrangements.

Auditor’s responsibilities

I am required under Section 5 of the Audit Commission Act 1998 to satisfy myself that the Authority has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources. The Code of Audit Practice issued by the Audit Commission requires me to report to you my conclusion relating to proper arrangements, having regard to relevant criteria specified by the Audit Commission.

I report if significant matters have come to my attention which prevent me from concluding that the Authority has put in place proper arrangements for securing economy, efficiency and effectiveness in its use of resources. I am not required to consider, nor have I considered, whether all aspects of the Authority’s arrangements for securing economy, efficiency and effectiveness in its use of resources are operating effectively.

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Basis of conclusion

I have undertaken my audit in accordance with the Code of Audit Practice, having regard to the guidance on the specified criteria, published by the Audit Commission in October 2010, as to whether the Authority has proper arrangements for: ■ securing financial resilience; and ■ challenging how it secures economy, efficiency and effectiveness.

The Audit Commission has determined these two criteria as those necessary for me to consider under the Code of Audit Practice in satisfying myself whether the Authority put in place proper arrangements for securing economy, efficiency and effectiveness in its use of resources for the year ended 31 March 2011.

I planned my work in accordance with the Code of Audit Practice. Based on my risk assessment, I undertook such work as I considered necessary to form a view on whether, in all significant respects, the Authority had put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources.

Conclusion

On the basis of my work, having regard to the guidance on the specified criteria published by the Audit Commission in October 2010, I am satisfied that, in all significant respects, Humberside Fire Authority put in place proper arrangements to secure economy, efficiency and effectiveness in its use of

56 resources for the year ending 31 March 2011.

Certificate

I certify that I have completed the audit of the accounts, including the firefighters’ pension fund accounting statements, of Humberside Fire Authority in accordance with the requirements of the Audit Commission Act 1998 and the Code of Audit Practice issued by the Audit Commission.

Mark Kirkham

Officer of the Audit Commission

Date

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Appendix 2 – Amendments to the draft financial statements

I identified the following misstatements during my audit and management have adjusted the financial statements. I bring them to your attention to aid you in fulfilling your governance responsibilities.

Comprehensive income and Balance sheet expenditure statement 57 Adjusted misstatement Nature of adjustment Dr £000s Cr £000s Dr £000s Cr £000s

Employer contributions payable to Employer contributions to the 2,021 the Firefighters' Pension Scheme, pension fund should be removed included within cost of services from the cost of services as part of the entries required by IAS 19. Employer contributions totalled £4,372k for the year; however, only £2,351k has been removed from cost of services meaning expenditure was overstated by £2,021k.

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Comprehensive income and Balance sheet expenditure statement Impairment losses and revaluation Impairments had been overstated by 745 1213 468 gains £1,120k in the accounts and revaluation gains understated by £93k. Meaning assets in the balance sheet were understated by £1,213k, expenditure is overstated by £745k and the revaluation reserve understated by £468k. The Capital Adjustment Account is also understated by £1,120k, as has the movement required on the General Fund. New Dimension Asset Entries New Dimension Assets had been 1,093 1093

58 brought on balance sheet at a value of £1,093k and recognised as at 1 April 2010. They should have been recognised initially as an asset in 2006/7 and 2007/8. The comparator figures for 1 April 2009 and 2009/10 Balance Sheet required restating to reflect the Prior Period Adjustment required for the assets. The income credit appearing in the CIES for receipt of the assets in 2010/11 also needed to be removed.

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Comprehensive income and Balance sheet expenditure statement Injury Awards under IAS 19 Injury Awards are to be accounted 2,330 3,400 24,610 24,610 for as a liability of the Fire Authority under IAS 19. This had not been included within the draft accounts. The CIES required a debit to expenditure of £2,330k for current service costs and interest costs, and a credit within non distributed costs of £3,400k for past service cost gains for the change from RPI to CPI. The Pension Liability and Pension Reserve both required an increase of £24,610k.

59 Receivables- prepayments Testing identified that the 102 102 prepayments included within the balance sheet were understated. The Authority completed additional work in order to place an accurate value of these.

I have also identified the following misstatements or errors in supporting notes. Management has made the necessary adjustments. I bring them to your attention to aid you in fulfilling your governance responsibilities

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Note Findings:

Note 2 Statement of Movement on the General This Note was re-titled "Adjustments between accounting basis and funding basis under Fund Balance regulation". The Note included the non-actuarial gain movement on the pension reserve of £24,416k. This has been removed and reported separately as the adjustment between accounting basis and funding basis under regulation on the pension reserve.

Note 7 Officers Emoluments The Note had been prepared on the basis of role rather than individuals and as such the salary amounts included for some posts were incorrect. The Note was updated to correct this.

Note 9 Capital Financing Requirement Under sources of finance, Revenue Contributions to Capital Outlay of £298k had been included under the category Government Grants and Contributions. This was amended so that they were recorded a Revenue Contributions to Capital Outlay. The figure included within the Note for MRP was adjustment from £1,354k to £1,384k.

Note 10 Leases The category of assets that finance leases fall under was amended from being Vehicles, Plant,

60 Furniture and Equipment to just Vehicles. Reconciliation between the minimum lease payments and present value was also added.

Note 16, 21 & 29 for Property, Plant and When the accounts were prepared the valuers' report used for land and building values was only a Equipment draft version. A final version of the report was received during the audit which saw changes in the values for two assets. This meant that entries within the three notes and balance sheet had to be updated as the value of land and buildings did not agree to the Valuation Report. This has also been raised as a point within the quality aspects of this report.

Note 17 Valuation of Property carried at current The value of vehicles had been overstated by £63k while the value of plant and equipment had value been understated by £63k. The two entries were corrected.

Note 19 Property, Plant and Equipment The valuation basis for land and buildings was updated to state that all land and buildings are valued on a Depreciated Replacement Cost Basis with the exception of the Headquarters which is valued on an Existing Use Value.

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Note 21 Analysis of Net Assets Employed The summary table at the beginning of this note which showed the net assets employed split between General Reserves and Fire Fighters' Pension Fund was removed as it was not a Code requirement and did not add anything to the users understanding of the accounts.

Note 23 Pensions An accounting policy for the treatment of actuarial gains/losses was added. The disclosure for the IAS 19 entries recorded in the CIES was also updated to include the £47,556k for past service costs and the Top Up Grant of £6,196k, as these had been excluded. Note 31 Contingent Liabilities The disclosure included a contingent liability for ill health payments. This liability was not relevant to the 2010/11 year and as such was removed. Note 32 Provision for Credit Liabilities The value for loans repaid during the year was amended from £1,256k to £1,348k.

Note 34 Financial Instruments The Note was updated to reflect financial instruments recorded in the balance sheet as the original note did not agree to the balance sheet. The wording of the fair value disclosure was updated to reflect the changes in 2010/11.

Note 35 Transition to IFRS This Note was re-titled and more detail added with regards to the effects of IFRS and the gross

61 movements on the Balance Sheet. The Note was also amended to remove details relating to New Dimension Assets as these are not related to IFRS. The SORP compliant 2008/9 and 2009/10

Balance Sheets were also removed from this note as they were not required.

An additional note has been added to show the changes made to previous year accounts to Additional note added to include details of the account for the New Dimension Assets which have now been transferred from the Department of prior period adjustment for recognition of the New Communities and Local Government. Dimension Assets

Cash Flow Statement and Notes to the Cash The Cash Flow Statement opening balance and adjustments to operating expenses were Flow Statement amended. The Notes to the Cash Flow Statement were also amended as they had included items that were not required.

Disclosures to the Pension Fund Account A transitional Net Asset Statement was added as at 1 April 2009 as this was required due to the change to IFRS.

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Pension Fund Account The Net Asset Statement for 2010/11 was updated to show the Top Up Grant still due at the year end of £654k.

Pension Fund Account There was an error of £19k included within the Employers Contributions Receivable and Top Up Grant lines of the Pension Fund Account. Both had been overstated by £19k due to the incorrect accounting for an additional contribution to injury awards.

Balance Sheet and supporting notes As this is the first year that the accounts were prepared under IFRS, they were required to show the restated Balance Sheet as at 1 April 2009 and the notes to the Balance Sheet also required entries for the 1 April 2009. The comparators at 1 April 2009 did not feature in the draft accounts.

Comparator Figures Comparator figures for 2009/10 included a recurring error of £153k, this featured in a number of core statements and notes. Comparators were updated to remove this error. Comparators on the CIES for the movement on the Revaluation Reserve in year were incorrectly included at £828k; this has been amended to £956k. The Revaluation Reserve itself also included an error in the comparator for Revaluation Gains; this was included at £431k rather than £303k.

62 Explanatory Foreword The explanatory foreword disclosure for the move from RPI to CPI in relation to pensions was updated to state that there was no overall impact on the general fund.

Missing Disclosure The Non Distributed Costs line within the cost of services on the CIES included a credit entry for the move from RPI to CPI on the Pension Fund. At £47,556k this is a significant material entry. As such there should be a disclosure note within the notes to the accounts that explains what this

entry is.

Other Points There were inconsistencies in the numbering of the Notes to the Accounts. This was rectified. Numbering of Notes Not all columns including restated figures had been titled restated. Columns titled restated Note 5 did not include dates at the top of the columns. Note 5 Dates on columns

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Appendix 3 – Action plan

Recommendations

Recommendation 1 Members of the Audit, Performance and Scrutiny Committee should note the changes made to the financial statements which have been agreed with management. Responsibility Audit, Performance and Scrutiny Committee Priority High Date Next meeting on 20 September 2011 63 Comments Recommendation 2 Life certificates checks should be followed up in a more timely manner Responsibility Senior Finance Manager (Systems) Priority High Date 30 September 2011 Comments There will be a management review of any outstanding life certificate returns.

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Recommendation 3 All timesheets and monthly returns should be signed as certified for payment by an appropriate member of staff. Responsibility Finance Manager and Arvato (Payroll Provider) Priority High Date Completed Comments Arvato have already been notified of requirement to only process authorised timesheets. Recommendation 4 A robust quality control procedure should be included in the final accounts preparation timetable. Responsibility Finance Manager Priority High

64 Date 31 January 2012 Comments This will be undertaken as part of the timetable planning for 2011/12 accounts. Recommendation 5 Ensure all reports from experts are final versions. Responsibility Finance Manager Priority Medium Date 30 June 2012 Comments A final check will be undertaken to ensure that the final version of all reports have been received.

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Recommendation 6 The Authority should ensure arrangements are in place to obtain a full set of related party disclosure returns. Responsibility Committee Manager Priority Medium Date 30 April 2012 Comments Outstanding returns will be chased up before the Authority AGM each year. Three of 81 returns were not received relating to 2010/11 accounts as at 1 September 2011.

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Appendix 4 – Glossary

Annual governance statement

A statement of internal control prepared by an audited body and published with the financial statements.

Audit closure certificate A certificate that I have completed the audit following statutory requirements. This marks the point when I have completed my responsibilities for the audit of the period covered by the financial statements.

66 Audit opinion On completion of the audit of the financial statements, I must give my opinion on the financial statements, including: ■ whether they give a true and fair view of the financial position of the audited body and its spending and income for the year in question; and ■ whether they have been prepared properly, following the relevant accounting rules.

Opinion If I agree that the financial statements give a true and fair view, I issue an unqualified opinion. I issue a qualified opinion if: ■ I find the statements do not give a true and fair view; or ■ I cannot confirm that the statements give a true and fair view.

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Materiality and significance The Auditing Practices Board (APB) defines this concept as ‘an expression of the relative significance or importance of a particular matter for the financial statements as a whole. A matter is material if its omission would reasonably influence users of the financial statements, such as the addressees of the auditor’s report; also a misstatement is material if it would have a similar influence. Materiality may also be considered for any individual primary statement within the financial statements or of individual items included in them. We cannot define materiality mathematically, as it has both numerical and non-numerical aspects’. The term ‘materiality’ applies only to the financial statements. Auditors appointed by the Commission have responsibilities and duties under statute, as well as their responsibility to give an opinion on the financial statements, which do not necessarily affect their opinion on the financial statements. ‘Significance’ applies to these wider responsibilities and auditors adopt a level of significance that may differ from the materiality level applied to their audit in relation to the financial statements. Significance has both qualitative and quantitative aspects. Weaknesses in internal control A weakness in internal control exists when: ■ a control is designed, set up or used in such a way that it is unable to prevent, or detect and correct, misstatements in the financial statements quickly; or 67 ■ a control necessary to prevent, or detect and correct, misstatements in the financial statements quickly is missing. An important weakness in internal control is a weakness, or a combination of weaknesses that, in my professional judgement, are important enough that I should report them to you. Value for money conclusion The auditor’s conclusion on whether the audited body has put in place proper arrangements for securing economy, efficiency and effectiveness in its use of resources based on criteria specified by the Audit Commission.

The Code of Audit Practice defines proper arrangements as corporate performance management and financial management arrangements that form a key part of the system of internal control. These comprise the arrangements for: ■ planning finances effectively to deliver strategic priorities and secure sound financial health; ■ having a sound understanding of costs and performance and achieving efficiencies in activities; ■ reliable and timely financial reporting that meets the needs of internal users, stakeholders and local people; ■ commissioning and buying quality services and supplies that are tailored to local needs and deliver sustainable outcomes and value for money; ■ producing relevant and reliable data and information to support decision making and manage performance; ■ promoting and displaying the principles and values of good governance;

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■ managing risks and maintaining a sound system of internal control; ■ making effective use of natural resources; ■ managing assets effectively to help deliver strategic priorities and service needs; and ■ planning, organising and developing the workforce effectively to support the achievement of strategic priorities. If I find that the audited body had adequate arrangements, I issue an unqualified conclusion. If I find that it did not, I issue a qualified conclusion.

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If you require a copy of this document in an alternative format or in a language other than English, please call: 0844 798 7070 © Audit Commission 2011. Design and production by the Audit Commission Publishing Team. Image copyright © Audit Commission.

The Statement of Responsibilities of Auditors and Audited Bodies issued by the Audit Commission explains the respective responsibilities of auditors and of the audited body. Reports prepared by appointed auditors are addressed to non-executive directors, members or officers. They are prepared for the sole use of the audited body. Auditors accept no responsibility to: ■ any director/member or officer in their individual capacity; or ■ any third party.

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www.audit-commission.gov.uk September 2011

70

Agenda Item No. 10

Humberside Fire Authority Report by the Director of Finance/ 27 September 2011 S.151 Officer

STATEMENT OF ACCOUNTS 2010/11

SUMMARY

1. This report includes the audited version of the Fire Authority’s Accounts for the financial year 2010/11.

2. Although the Fire Authority’s Accounts are now successfully completed, the 2010/11 Accounts have been a significant challenge for all Local Authorities. The introduction of the International Financial Reporting Standard (IFRS) for Local Authority Accounts for 2010/11 has made the document some 35% longer and also, more importantly, fundamentally changed much of the format.

3. This significant change has been coupled in Humberside Fire Authority with a change in Finance Manager and, therefore, it is pleasing that the work has now been concluded and resulted in a clean opinion for the Accounts and the value for money conclusion.

4. In partnership with the Audit Commission, a number of corrections to the draft Accounts have been undertaken in order to reach the final version. These are detailed in the Audit Commission’s Annual Governance Report elsewhere on this agenda. The final version of the Annual Accounts are attached at Appendix 1 of this report.

RECOMMENDATIONS

5. That Members approve the audited Statement of Accounts for 2010/11 and that they are signed by the Chair on behalf of the Fire Authority.

STATEMENT OF ACCOUNTS – 2010/11

6. Members will recall considering the draft unaudited Statement of Accounts for 2010/11 at the 17 June 2011 Audit, Performance and Scrutiny Committee and the 24 June 2011 Fire Authority. The audited Statement of Accounts (as presented here) for 2010/11 has also been considered at the 20 September 2011 Audit, Performance and Scrutiny Committee.

7. The Audit Commission team, in close liaison with the Fire Authority’s Finance team, have now substantially completed the audit of the 2010/11 Statement of Accounts and supporting papers.

8. Only one change has impacted on the outturn position ‘bottom line’. This was a correction of the accounting treatment of a prepayment (£102k) which whilst paid in 2010/11, strictly relates to the 2011/12 financial year. The item is not material but the judgement was made for completeness and accuracy to correct the treatment.

9. This has resulted in a revised outturn underspend of £2.489m (£2.387m was reported in the June draft Accounts). Clearly, the planning for 2011/12 Annual Accounts has already begun and where possible the experiences of the first year of IFRS compliant Accounts will be used as a platform going forward.

71 10. The Audit Commission’s Annual Governance Report (AGR) is included elsewhere on this agenda. The AGR gives an unqualified (clean) opinion on the Authority’s Accounts for 2010/11 and an unqualified (clean) value for money conclusion. Both of these aspects are extremely pleasing and show another year of sound financial management.

11. This report represents the final stage in the sign-off of the 2010/11 Statement of Accounts. Once approved, the draft ‘Letter of Representation’ will be duly signed and passed to the District Auditor. A draft is attached at Appendix 2 of this report.

12. Furthermore, after the 27 September Fire Authority meeting, the 2010/11 Accounts will be distributed to stakeholders and local libraries as well as posted on the website, to ensure information is as accessible as possible. A further notice will be placed in the press to inform the public that the 2010/11 audit of Accounts is now closed.

STRATEGIC PLAN COMPATIBILITY

13. The Authority has produced a high quality and timely set of Accounts for 2010/11 which support the Strategic Plan objective of ‘making the best use of the resources we have’.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

14. Robust and timely financial management information sits at the heart of good governance. The delivery of the 2010/11 Statement of Accounts ensures that the Authority understands its overall financial position going forward.

LEGAL IMPLICATIONS

15. The Fire Authority statutorily must approve its audited Accounts by 30 September each year.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

16. No direct issues arising.

CORPORATE RISK MANAGEMENT IMPLICATIONS

17. The requirement to produce an accurate and timely financial position at outturn is implicit in underpinning the organisation’s governance arrangements and the Strategic Risk Register.

HEALTH AND SAFETY IMPLICATIONS

18. No direct issues arising.

COMMUNICATION ACTIONS ARISING

19. Copies of the Annual Statement of Accounts for 2010/11 will be circulated to key stakeholders and local libraries. A 2-side Summary of the 2010/11 Annual Accounts will also be published on the Authority’s website after approval by the Fire Authority on 27 September 2011.

DETAILS OF CONSULTATION

20. No direct issues arising other than close working with the Audit Commission since the start of the 2010/11 Accounts in January 2011. The statutory notice to allow members of the public in the Humberside area to inspect the Accounts was placed in the local press on 15 June 2011.

72 BACKGROUND PAPERS AVAILABLE FOR ACCESS

21. 24 June 2011 Fire Authority – ‘Annual Statement of Accounts 2010/11’. 2010/11 Accounts Working Papers.

RECOMMENDATIONS RESTATED

22. That Members approve the audited Statement of Accounts for 2010/11 and that they are signed by the Chair on behalf of the Fire Authority.

K WILSON

Officer Contact: Kevin Wilson  01482 567183 Director of Finance/S.151 Officer

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

KW/SJ 13 September 2011

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74 i Appendix 1

75 ii

CONTENTS

Page

Foreword iii

Audit Opinion xiv

Statement of Responsibilities for the Statement of Accounts xv

Annual Governance Statement xvi

Movement in Reserves Statement 1

Comprehensive Income and Expenditure Statement 3

Balance Sheet 4

Cash Flow Statement 5

Notes to the Core Financial Statements 6

Firefighter Pension Fund Account 59

Glossary of Accounting Terms 61

76 iii

EXPLANATORY FOREWORD BY THE DIRECTOR OF FINANCE/S.151 OFFICER

INTRODUCTION

The Statement of Accounts is published to present a true and fair financial position and transactions of the Authority. These Accounts set out the financial results of the Authority’s activities for the year ended 31 March 2011 and have been prepared in accordance with the requirements of the Code of Practice on Local Authority Accounting in the United Kingdom 2010/11 published by the Chartered Institute of Public Finance and Accountancy (CIPFA).

The purpose of the foreword is to offer interested parties an easily understandable guide to the most significant matters reported in the Accounts. The inevitable use of technical language has been kept to a minimum. A ‘Glossary of Accounting Terms’ to help explain some of the technical terms can be found in the publication.

The Authority's Accounts for the year 2010/11 are set out on pages 1-64 and in addition to this foreword they consist of:

• The Statement of Responsibilities for the Statement of Accounts which states the responsibilities of the Authority and the Director of Finance for the Accounts. This statement is signed and dated by the Director of Finance under a statement that the Accounts give a true and fair view of the financial position of the Authority at the accounting date and its income and expenditure for the year ended 31st March;

• The Annual Governance Statement which reviews the effectiveness of governance arrangements in the Authority;

• The Movement in Reserves Statement which shows the movement in the year on the different reserves held by the Authority. This statement is split into useable and unusable reserves, the useable reserves are those that can be used by the Authority to fund expenditure. Unuseable reserves are those reserves that are required to mitigate the effect of some transactions on council tax and those reserves that are created to mitigate unrealised gains and losses;

• The Comprehensive Income and Expenditure Statement shows the accounting cost of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation. The Authority raises taxation in accordance with regulations which are different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement (the movement on useable reserves);

• The Balance Sheet which shows the value of the assets and liabilities recognised by the Authority at the balance sheet date;

• The Cash Flow Statement which shows the changes in cash and cash equivalents during the year. This statement shows how the Authority generates and uses its cash and cash equivalents by classifying cash flows as operating, investing and financing activities;

• The Pension Fund Account which shows the movements relating to the Firefighters’ pension scheme.

2. 2010/11 FINANCIAL YEAR

The 2010/11 financial year has taken place against a back drop of greater stability in the banking sector, but volatility continues to be an issue in the wider economy.

The main impacts on Humberside Fire Authority are as follows:-

 Continuation of low interest income on balances held by the Authority due to historically low interest rates;

 Continuation of tighter criteria for the on-lending of surplus funds as counterparty risk remains a concern;

 The notification of a circa 6% reduction in external grant over the years 2011/12 and 2012/13

The Authority continues to take a prudent approach to the management of its financial affairs and has during the financial year agreed efficiencies of circa £4.4m for implementation over the coming years.

77 iv

This is coupled with a prudent approach to the protection of reserves and robust in year monitoring of expenditure to allow remedial action to be taken where necessary.

2011/12 promises to deliver new financial challenges and the Authority will work hard to ensure where possible any negative effects are mitigated.

3. MATERIAL IMPAIRMENTS

During 2010/11 the Authority revalued a number of its assets. This resulted in a material impairment;

1. The value of Peaks Lane station in Grimsby has fallen by £1.015m, £0.476m of this impairment was offset by previous increases in value, the remaining £0.539m is reflected in the Comprehensive Income and Expenditure Statement.

4. WHERE THE MONEY CAME FROM:

The Authority receives Revenue Support Grant and an allocation of pooled National Non Domestic Rates directly from Central Government. It also sets a precept or council tax throughout the Humberside area for the balance of its expenditure requirements. The precept set for 2010/11 was £22.287m (2009/10 was £21.797m) which equated to a Council Tax Band D Equivalent of £77.92.

5. WHAT THE MONEY WAS SPENT ON: CUE AUTHORITY STATEMENT OF ACCCOUNTS 2006/2007 7

78 v

6. COMPARISON OF ACTUAL EXPENDITURE IN 2010/11 WITH THE BUDGET

The actual expenditure and income of the Authority for 2010/11 compared with levels forecasted in the original and adjusted estimate, before IAS 19 and Collection Fund adjustments and Management and Support recharges, is summarised below:

2009/10 2010/11 Revised Actual Actual Variance Estimate £'000 £'000 £'000 £'000

4,263 Communtiy Fire Safety 4,425 4,211 (214) 31,858 Fire Fighting & Rescue Operations 33,005 32,346 (659) - Fire Service & Emergency Planning - - - 11,149 Management & Support 13,231 11,155 (2,076) 159 Corporate Democratic Core 155 158 3 81 Corporate Management 74 76 2

47,510 Net Cost of Service 50,890 47,946 (2,944)

750 Interest Payable and Similar Charges 1,017 983 (34)

(52) Interest Receiveable (50) (81) (31)

48,208 Net Operating Expenditure 51,857 48,848 (3,009)

(22,009) Precepts (22,544) (22,544) -

(4,935) General Government Grants (3,446) (3,446) -

(21,383) Non-Domestic Rates Distribution (23,729) (23,729) -

(119) (Surplus)/Deficit for the Year 2,138 (871) (3,009)

Accounting Adjustments 21 Grants and Contributions Deferred - 917 917 (2,401) Depreciation and Impairment of Fixed Assets (2,884) (4,324) (1,440) - Revenue Contribution to Capital Outlay 150 298 148 672 Minimum Revenue Provision 1,275 1,384 109

Contributions to/(from) - Earmarked Reserve (819) - 819 398 General Reserve 140 107 (33)

(1,429) Net (Surplus)/Deficit - (2,489) (2,489)

79 vi

The table below shows the movement on the General reserve for 2010/11 (see also the Movement in Reserves Statement on page 1):

2009/10 2010/11 Revised Actual Actual Variance Estimate £'000 £'000 £'000 £'000

(4,207) Balance as at 1 April (5,442) (5,442) -

(398) Contributions to/(from) Revenue 679 (107) (786)

(1,429) Net (surplus)/deficit for the year - (2,489) (2,489)

592 Movement between reserves - 2,320 2,320

(5,442) Balance as at 31 March (4,763) (5,718) (955)

80 vii

The table below is an analysis of the major revenue variances:

Overspend / (Underspend) £'000 Community Fire Safey Wholetime Staff A saving due to no pay award during 2010/11 (22) Support Staff (239) a) A saving due to no pay award during 2010/11 b) Accumulation of posts remaining vacant throughout the year Consultant Fees Regional recharge safety team secondment 20

Fire Fighting & Rescue Operations Wholetime Staff (1,364) a) A saving due to no pay award during 2010/11 b) Anticipated increase in firefighters superannuation not occuring in 2010/11 c) Staff moved to cover long term sickness or into temporary posts to carry out one off projects (this will be offset by an overspend on Management and Support oversepnd) and vacancies due to staff turnover Support Staff (36) a) A saving due to no pay award during 2010/11 b) Posts remaining vacant throughout the year Indirect Employees * (189) Energy Costs Savings accruing from more efficient use of heating systems and electricity (52) Operating leases Amount of 2009/10 operating leases overstated (107) Hydrants Less work carried out on hydrant maintenance than expected (197) Aeriel Rentals No longer have any aeriel rentals (34) Maintenance Agreements There are fewer maintenance agreements than anticipated (78) Asset Rentals Increase in the value of properties 2,164 Government Grants * 191

* Ring fenced Fire Service Emergency Planning grant funding for 2010/11 not fully used and carried forward into 2011/12

Management and Support Services Wholetime Staff 144 a) Pay award b) Staff movements to cover long term sickness or creation of posts to carry out one off projects (this will be offset by an underspend in Fire Fighting and Operations) Support Staff (310) a) A saving due to no pay award during 2010/11 b) Posts remaining vacant throughout the year Agency Staff Additional agency staff to cover vacant posts 104 Added Years Pension Costs Costs incurred due to three retirements from the review of Support Services 112 Course Fees More course fees than anticipated - trauma care 110 Pensions Injury allowances and ill health contributions have been less than anticipated (99) Rent The movement of workshops didn't happen during 2010/11 (100) Repairs and Maintenance Less repairs and maintenance work carried out than anticipated (46)

Cont….

81 viii

Cont….

Overspend / (Underspend) £'000 Petrol Less fuel consumed than anticipated during 2010/11 (92) PPE Capital expenditure was funded through long-term borrowing rather than from the PPE Earmarked Reserve that was created as a Revenue Contribution to Capital Outlay (898) Telephone Rentals Transition costs associated with the new telephone system and additional facilities to support service Control 56 Maintenance of Computers Additional maintenance costs associated with the new telephone system and security work as highlighted in an internal audit report 55 Stock Adjustment Miscellaneous stock adjustments of which the majority relate to old stocks of PPE 145 Legal Costs relating to 2010/11 legal issues 103 Contingency After review there was no need to use the contingency set aside during the current year (400) Asset Rentals Decrease in the value of properties (997) Interest Payable Borrowing rates on new loans taken out during the year have been at a favourable interest rate (34) Interest Receivable Interest rates have gradually increased throughout the year (31) Reserves None of the planned reserves have been used during the year 679 Accounting Adjustments a) Impairments following 2010/11 valuations (1,510) b) Grants & Contributions Deferred - change to CIPFA Code Accounting 917 c) MRP 109 d) Helmet replacement as per Fire Authority 148

82 ix

The table below details the technical accountancy adjustments that changes the Surplus for the year, in the table on page v, to the surplus on the Comprehensive Income and Expenditure Account on page 3.

Local Government Pension Fire Fighters' Collection Fund Per CI&E Per Foreword Scheme IAS 19 Pension Scheme IAS 19 Admin & Capital Account (Surplus) / Removal of Current Cost Removal of Current Cost Accounting for Support Adjustment Balance Residual (Surplus) / Deficit Employers' of Pension Employers's of Pension Pension Top- Recharge Balance Declared Balance Deficit Contributions Scheme Contributions Scheme Up Grant £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000

Community Fire Safety 4,211 (197) 202 (388) 853 1,563 6,244 Fire Fighting & Rescue Operations 32,346 (249) 255 (3,686) 8,742 9,927 47,335 Fire Service & Emergency Planning - - - Management & Support 11,155 (532) 544 (316) 693 (11,544) - Corporate Democratic Core 158 24 182 Corporate Management 76 (6,196) 30 (6,090) Non Distributed Costs - (2,466) (48,490) (50,956)

Cost of Services 47,946 (978) (1,465) (4,390) (38,202) (6,196) (0) - - - - (3,285)

Gain on disposal of fixed assets - (23) (23)

83 Interest Payable & Similar Charges 983 983

Interest Receivable (81) (81)

Pensions interest costs & expected return on pensions asset - 287 24,850 25,137

Net Operating Expenditure . . . . 48,848 (978) (1,178) (4,390) (13,352) (6,196) (0) (23) - - - 22,731

Precepts (22,544) 257 102 (312) (22,497)

General Government Grants (3,446) (3,446)

Non-domestic rates distribution (23,729) (23,729)

(Surplus)/Deficit on Provision of Services (871) (978) (1,178) (4,390) (13,352) (6,196) (0) (23) 257 102 (312) (26,941)

x

7. CAPITAL EXPENDITURE

A summary of the financial position for 2010/11 is set out below:-

2010/11 Revised Project Actual Variance Estimate £'000 £'000 £'000

Buildings Hornsea 263 16 (247) Pocklington 208 19 (189) Goole 75 108 33 Snaith 234 19 (215) Grimsby, Peaks Lane 494 532 38 Waltham 145 13 (132) Immingham West 175 - (175) Workshops Relocation 100 - (100) Service Headquarters 301 96 (205) Beverley - 7 7 Kirton Lindsey - 1 1

Vehicles 1,408 919 (489)

Plant & Equipment IT Equipment 734 295 (439) Personnel 150 - (150) Equipment 556 1,315 759

4,843 3,340 (1,503)

84 xi

The table below is an analysis of the most significant capital variances:

Overspend/ (Underspend) £'000

Hornsea Completion of building works slipped into 2011/12 (247) Pocklington Completion of building works slipped into 2011/12 (189) Snaith Completion of building works slipped into 2011/12 (215) Waltham Completion of building works slipped into 2011/12 (132) Immingham West Building works not to be started until 2011/12 (175) Workshops Relocation Works not to be started until 2011/12 (100) Service Headquarters Completion of building works slipped into 2011/12 (205)

Vehicles Bodywork element of the Scania Fire Appliances will not be finished until 2011/12 (407) Non operational vehicles not delivered until 2011/12 (55)

Plant & Equipment Rephasing of the implementation of the IT replacement programme (417) Purchase of the personnel system now slipped into 2011/12 (150) PPE changeout now being funded through capital rather than from the PPE Earmarked Reserve 881 Part of operational equipment now slipped into 2011/12 (59) Part of the equipment for technical water rescue is to be purchased during 2011/12 (56) Command and Control upgrade 87

8. FINANCING OF CAPITAL EXPENDITURE

The Authority has a rolling capital programme that is reviewed throughout the year. The programme is financed by external borrowing and the costs of the borrowing are met within the revenue budget. Supported Capital Expenditure (SCE) issued by Central Government for 2010/11 was £0.997m (2009/10 was £0.969m).

9. TRANSFER OF NEW DIMENSION ASSETS

During 2010/11 a number of assets with a fair value of £1.241m (at 1st April 2010) were transferred from the Department for Communities and Local Government to Humberside Fire Authority. Humberside Fire Authority did not pay for these assets. These assets are referred to as New Dimension Assets and were previously located on Humberside Fire Authority premises but owned by the DCLG.

10. AUTHORITY BALANCES AND RESERVES

Balances at 1st April 2010 stood at £7.592m. Earmarked reserves amounting to £2.320m were created during 2010/11 and this amount was transferred from the General Reserve. During 2010/11 £0.107m was transferred to the General Reserve and by adding £2.489m, the surplus for the year, balances at 31st March 2011 now stand at £10.188m.

85 xii

11. PROVISIONS

As at 31st March 2011 the Authority does not have any provisions. There are a number of contingent liabilities which may have an impact on the balances of the Authority in the future but currently these are difficult to predict or quantify the cost(Please see note 31).

12. FUTURE SPENDING PLANS

The Authority has published a Medium Term Financial Plan for 2011/12 – 2014/15 which sets out the overall shape of the Authority’s budget by establishing how available resources will best deliver corporate objectives and to mitigate corporate risks identified in the Strategic Plan. The Authority has received a capital grant of £1.339m and has supported borrowing of £0.997m to finance capital expenditure during 2011/12. The current level of borrowing held by the Authority is £20.96m. The operational boundary is £28.1m and the authorised limit is £32.1m (These are part of the Authority’s prudential indicators that have been previously agreed in the Authority’s Treasury Management report; Fire Authority 25th March 2011).

13. INTERNATIONAL FINANCIAL REPORTING STANDARDS

2010/11 is the first year that the Authority is required to produce the annual Accounts under International Financial Reporting Standards. This has resulted in a significant amount of work and the restatement of many of the comparative figures included within the annual Accounts. Comparatives have also been included for the UK GAAP Accounts that were produced for 2009/10. The overall effect on the net worth of the Authority due to the change to IFRS is £0.221m CCCOUNTS 2006/2007 9 14. INTERNATIONAL FINANCIAL REPORTING STANDARD 19 (IAS19)

This financial reporting standard requires employers to report the full cost of pension benefits as they are earned, regardless of whether they have been paid for. The total liability is £419.572m (2009/10 was £477.228m); this is split between the Local Government Pension Scheme £3.742m (2009/10 was £11.548m) and the Fire Service Scheme £415.830m (2009/10 £465.680m). The Fire Service liability includes both the Firefighters’ Pension Scheme 1992 and the New Firefighters’ Scheme 2006. It should be noted that IAS19 does not impact upon the level of balances held by the Authority. (Under IAS19 injury awards are now recognised in the accounts of the Authority).

15. NON DISTRIBUTED COSTS

In the June 2010 Budget the Chancellor of the Exchequer announced that The Consumer Price Index would be used instead of the Retail Price index to increase Local Government and FireFighter pensions, this change has resulted in a reduction in the overall liability of the pension schemes. This amount is shown in the Comprehensive Income and Expenditure Statement as non distributed cost (£48.490m for the Firefighters’ pension scheme and £2.466m for the Local Government Pension Scheme). This change has no effect on the General Fund Account.

16. PENSION FUND ACCOUNT

The Financial Statements now include a separate section for the Pension Fund Account. Under the pension funding arrangements each Authority in England is required by legislation to operate a Pension Fund and the amounts that must be paid into and out of the Fund are specified by regulation.

17. CHANGE IN STATUTORY FUNCTION

There have been no changes to the Authority’s statutory functions during 2010/11.

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18. MATERIAL EVENTS AFTER 31ST MARCH 2011

There have been no material events (either adjusting or non adjusting) that relate to conditions existing at the Balance Sheet date.

19. GOING CONCERN

The Authority approved a number of proposals at 4th March 2011 Fire Authority meeting. The savings proposals agreed at this meeting have resulted in a balanced budget for 2011/12 and 2012/13 with 2013/14 currently forecasting a small deficit. The Authority will remain a going concern.

20. FURTHER INFORMATION

The Statement of Accounts is intended to give electors, members, employees and other interested parties clear information about the Authority’s finances. I would welcome any comments, which would help improve the information. To this end a questionnaire has been devised and included in the Accounts.

Further information about the Accounts is available from the Finance Section, Service Headquarters, Summergroves Way, Hull. HU4 7BB. In addition, interested members of the public have a statutory right to inspect the Accounts before the audit is completed. The availability of the Accounts for inspection is advertised in the local press throughout the Humberside area.

Kevin J Wilson BSc Econ (Hons), CPFA Director of Finance/S.151 Officer

24 June 2011

87 xiv

AUDIT OPINION

(This page is intentionally left blank to insert the audit opinion)

88 xv

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS

The Authority’s The Authority is required: Responsibilities . To make arrangements for the proper administration of its financial affairs and to ensure that one of its officers has the responsibility for the administration of those affairs. In this Authority that officer is the Director of Finance/S.151 Officer.

. To manage its affairs to ensure economic, efficient and effective use of resources and to safeguard its assets.

. To approve the Statement of Accounts.

I confirm that these Accounts were approved at the Fire Authority meeting held on 27th September 2011.

Signed on behalf of the Fire Authority by the Chair of the meeting approving the Accounts:

Date:

Director of The Director of Finance/S.151 Officer is responsible for the preparation Finance/S.151 Officer of the Authority’s statement of Accounts which, in accordance with the Responsibilities Code of Practice on Local Authority Accounting in Great Britain (the ‘Code of Practice’), issued by the Chartered Institute of Public Finance and Accountancy (CIPFA) is required to present fairly the financial position of the Authority at the accounting date, and its income and expenditure for the year ended 31 March 2011.

In preparing this statement of Accounts, the Treasurer has:

. Selected suitable accounting policies and then applied them consistently;

. Made judgements and estimates that were reasonable and prudent;

. Complied with the Code of Practice

The Treasurer has also:

. Kept proper accounting records which were up to date;

. Taken reasonable steps for the prevention and detection of fraud and other irregularities.

In accordance with regulation 8(2) of the Accounts and Audit Regulations 2011, I certify that the attached Statement of Accounts present a true and fair view of the financial position of the Authority as at 31 March 2011 and its income and expenditure for the year.

Date:

Kevin J Wilson BSc Econ (Hons), CPFA Director of Finance/S.151 Officer

89 xvi

ANNUAL GOVERNANCE STATEMENT

Scope of Responsibility

1. The Humberside Fire Authority (HFA) is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. The HFA also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.

2. In discharging this overall responsibility, the HFA is responsible for putting in place proper arrangements for the governance of its affairs, facilitating the effective exercise of its functions and which includes arrangements for the management of risk.

3. The HFA has approved and adopted a code of corporate governance, which is consistent with the principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government. A copy of the code is on our website at www.humbersidefire.gov.uk or can be obtained from the Secretary/Director of Corporate Administration.

4. This statement explains how the HFA has complied with the code and also meets the requirements of regulation 4(2) of the Accounts and Audit Regulations 2003 as amended by the Accounts and Audit (Amendment) (England) Regulations 2006 in relation to the publication of a statement on internal control and again amended in 2011.

The purpose of the governance framework

5. The governance framework comprises the systems and processes, and culture and values, by which the HFA is directed and controlled and its activities through which it accounts to, engages with and leads the community. It enables the HFA to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective services.

6. The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the HFA’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.

7. The governance framework has been in place at the HFA for the year ended 31 March 2011 and up to the date of approval of the Annual Performance Report and Statement of Accounts.

The Governance Framework 2010/11

8. The key elements of the HFA’s governance framework in respect to 2010/11 included:

(a) The Constitution of Authority which includes:

90 xvii

 Committee Membership and Terms of Reference  Scheme of Delegation to Officers  Financial Procedure Rules  Contract Procedure Rules  Members’ Code of Conduct  Officers’ Code of Conduct  Protocol for Member and Officer Relationships  Code of Corporate Governance

(b) The Audit, Performance and Scrutiny Committee, as well as the HFA itself, received regular reports on the HFA performance and governance arrangements.

(c) An approved Corporate Risk/Opportunity Management Strategy and Policy which includes the maintenance of an effective Corporate Risk Register and Directorate Risk Registers.

(d) An approved ‘Local Code of Corporate Governance’ in accordance with the CIPFA/SOLACE Framework for Corporate Governance.

(e) The designation of the Chief Fire Officer as Chief Executive responsible to the HFA for all aspects of operational management.

(f) The designation of the Director of Finance as S.151 Officer (Local Government Act 1972) in accordance with Section 112 of the Local Government Finance Act 1988.

(g) The designation of the Director of Corporate Administration as Monitoring Officer with the requirement to report to the full HFA if it is considered that any proposal, decision or omission would give rise to unlawfulness or maladministration.

(h) The Organisational Performance Group (OPG) has met on 6 occasions. The OPG is charged with undertaking a strategic overview of the HFA control environment, the response to external audit, performance management and strategic planning. OPG during spring 2011 was reconstituted as Strategic Management Team (Performance).

(i) The production of monthly Management Accounts and Prudential Indicators which are distributed to all Members, Corporate Management Team and Policy Advisory Group and considered at the regular Policy and Executive Committee and Audit, Performance and Scrutiny Committee meetings.

(j) The Service and Finance Planning process.

(k) An approved Asset Management Strategy and Asset Management Plans for HFA assets.

(l) The role of an external Independent (non voting) Member of the Audit, Performance and Scrutiny Committee.

(m) A Strategic Plan for the period 2008-11 (refreshed in 2010).

(n) Directorate Plans to deliver strategic objectives and functional references.

(o) An IRMP Action Plan for 2010/11, which outlines progress to date of projects detailed within the Authority’s IRMP 2008-11.

91 xviii

(p) In accordance with the Service Business Planning Framework the Strategic Plan for 2011-14 has been approved by the HFA to ensure a three future years looking plan linked to financial planning.

(q) Production of an Annual Performance Report for 2010/11.

(r) Publicised the Anti-Fraud and Corruption Policy.

(s) Promoted Whistleblowing Policy.

(t) Promoted the Gifts and Hospitality Policy.

(u) Subscription to Public Concern at Work.

(v) The role of the Governance and Standards Committee.

(w) The work of the Partnership Forum in identifying and evaluating partnership arrangements.

(x) Member and Officer Development Programmes.

(y) An approved Treasury Management Policy and Prudential Indicators.

(z) An approved HFA Performance Management Framework.

(aa) The establishment of a Protective Security Group, reporting to Corporate Management Team.

(bb) Achievement of ISO 14001.

(cc) The HFA approved Single Equality Scheme Improvement Plan.

(dd) The Active Risk Team comprising Members and Officers, reporting to Audit, Performance and Scrutiny Committee and Corporate Management Team.

Review of Effectiveness

9. The HFA during 2009/10 completed a second in-depth review of its governance arrangements. This set in place a governance enhancement plan for 2010/11, which is led through the Governance and Standards Committee.

10. Internal Audit undertook a review of corporate governance arrangements during 2010/11 and gave a substantial assurance.

11. The Authority have agreed a third review of corporate governance during summer 2011.

12. The effectiveness of the governance arrangements can be demonstrated by the 3-stage consultation/engagement process leading to the meeting of the Authority on 4 March 2011, which agreed a Strategic Plan 2011/14 and an IRMP 2011/12. This has positioned the Authority to make efficiencies during the first 2 years of the CSR period.

13. In respect to the internal governance of the Service, during Spring 2011 there has been significant Directorate portfolio realignment and steps being taken to create an effective Board structure. These are designed to develop greater synergies and cross Directorate working. While the outcomes of such steps will feature heavily in the AGS for 2011/12, for the purposes of the 2010/11 AGS, it should be noted that these changes are underway.

92 xix

14. During 2010/11 there were 5 Editions of the Corporate Risk Register established by the Corporate Management Team.

15. The Audit, Performance and Scrutiny Committee throughout 2010/11 received reports from Internal Audit in respect to the internal control environment. The internal audit plan is informed significantly by the Corporate Risk Register.

16. The induction and training of new Members during 2010/11 has further enabled Members to discharge the functions of the HFA.

17. From the AGM on 28 May 2010 to the end of the 2010/11 cycle, the HFA Committees met as follows:-

HFA 8 occasions Policy and Executive 4 occasions Audit, Performance and Scrutiny 5 occasions Governance and Standards 4 occasions

18. Members at each meeting of the Policy and Executive Committee and the Audit, Performance and Scrutiny Committee received Management Accounts for review.

19. The Authority also adopted a formal call in procedure of decisions.

20. The review of the effectiveness of the system of internal control is informed by:

 The work of Senior Officers  The work of Internal Audit  The Corporate Risk Opportunity Management Strategy  Performance information  The Audit Commission in their Annual Governance Letter and other reports

21. Internal Audit have undertaken a number of reviews during 2010/11. The following areas were covered:-

 Two CPU Site Reviews (North East Lincolnshire and East Riding of Yorkshire)  Business Continuity Planning  Operational Fleet Management  Payroll and Payable Reviews  RCC  Customer Consultation  Equality & Diversity  Key Financial Controls and IFRS Readiness

22. Internal Audit completed an additional audit as instructed by Senior Officers, and reported to the Audit, Performance and Scrutiny Committee.

23. The Active Risk Team, which comprises Officers and Members, and which is integral to the Corporate Risk Management Strategy, has met five times during 2010/11. There are three Member Champions in respect to Risk Management.

93 xx

Significant Governance Issues 2010/11

24. No significant governance issues have arisen during the 2010/11 year.

Conclusions

25. This Annual Governance Statement for 2010/11 provides Members with a high level of assurance on the Authority’s governance arrangements.

Signed

……………………………………………… ……………………………………………… Chair of the Authority Chief Fire Officer and Chief Executive

……………………………………………… ……………………………………………… S.151 Officer Secretary and Monitoring Officer

94 1

STATEMENT OF ACCOUNTS

MOVEMENTS IN RESERVES STATEMENT

This statement shows the movement in the year on the different reserves held by the Authority, analysed into ‘usable reserves’ (i.e. those that can be applied to fund expenditure or reduce local taxation) and other reserves. The Surplus or (Deficit) on the Provision of Services line shows the true economic cost of providing the Authority’s services, more details of which are shown in the Comprehensive Income and Expenditure Statement. These are different from the statutory amounts required to be charged to the General Reserve Balance and the Housing Revenue Account for council tax setting and dwellings rent setting purposes. The Net Increase / Decrease before Transfers to Earmarked Reserves line shows the statuary General Fund Balance and Housing Revenue Account Balance before any discretionary transfers to or from earmarked reserves undertaken by the Authority.

2010/11 (Opening balances restated) Useable Collection General Capital Capital Fund Earmarked Funding Receipts Total Usable Pensions Adjustment Revaluation Adjustment Total Authority Reserves Balance Reserve Reserves Reserve Account Reserve Account Reserves £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Note(s) 26,28 26 26 27 27,29 27,29

95 Balance at 31 March 2010 2,150 5,442 330 7,922 (477,228) 32,563 9,898 360 (426,485)

Surplus or (Deficit) on Provision of Services (accounting basis) 26,941 88 27,029 27,029

Other Comprehensive Expenditure and Income 0 32,170 989 33,159 Total Comprehensive Income & Expenditure - 26,941 88 27,029 32,170 - 989 - 60,188

Adjustments between Accounting Basis & Funding Basis under Regulations (24,345) (24,345) 25,486 (1,740) (64) (47) (709)

Net Increase / Decrease before Transfers to Earmarked Reserves - 2,596 88 2,684 57,656 (1,740) 925 (47) 59,478

Transfers to / from Earmarked Reserves 2,320 (2,320) - 0

Increase / Decrease in Yea r 2,320 276 88 2,684 57,656 (1,740) 925 (47) 59,478

Balance at 31 March 2011 4,470 5,718 418 10,606 (419,572) 30,823 10,823 313 (367,006)

2

MOVEMENT IN RESERVES STATEMENT (2009/10)

2009/10 - restated Useable Collection Capital Capital Fund Earmarked General Receipts Total Usable Pensions Adjustment Revaluation Adjustment Total Authority Reserves Reserve Reserve Reserves Reserve Account Reserve Account Reserves £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Notes(s) 25,27 25 25 26 26,28 26,28 Balance at 31 March 2009 1,558 4,207 317 6,082 (324,109) 33,278 11,113 280 (273,356)

Surplus or (Deficit) on Provision of Services (accounting basis) (16,633) (16,633) (16,633) Other Comprehensive Expenditure and Income 0 (136,284) (956) (137,240) Total Comprehensive Income &

96 Expenditure - (16,633) - (16,633) (136,284) - (956) - (153,873)

Adjustments between Accounting Basis & Funding Basis under Regulations ( Note 2) 18,460 18,460 (16,835) (962) 80 743

Net Increase / Decrease before Transfers to Earmarked Reserves - 1,827 - 1,827 (153,119) (962) (956) 80 (153,130)

Transfers to / from Earmarked Reserves 592 (592) 13 13 246 (259) 0

Increase / Decrease in Yea r 592 1,235 13 1,840 (153,119) (716) (1,215) 80 (153,130)

Balance at 31 March 2010 2,150 5,442 330 7,922 (477,228) 32,563 9,898 360 (426,485)

3

COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT

This statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation. Authorities raise taxation to cover expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement.

Restated 2009-10 Year ended 31 March 2011 £'000 £'000 £'000 £'000 £'000 £'000 Expenditure Income Net Note(s) Expenditure Income Net 5,883 (246) 5,637Community Fire Safety 6,577 (333) 6,244 43,479 (478) 43,001Fire Fighting & Rescue Operations 48,13947,335 (804) 19 (19) 0 Fire Service Emergency Planning 00 0 183 0 183Corporate and Democratic Core 182182 0 111 (6,359) (6,248) Corporate Management 106 (6,196) (6,090) 000 Non Distributed Cost 38 0 (50,956) (50,956)

97 49,675 (7,102) 42,573Cost of Services - Continuing Operations 55,004 (58,289) (3,285)

(13) (13) Other Operating Expenditure 5 (23) (23)

22,532 (52) 22,480Financing and Investment Income and Expenditure 5 26,120 (81) 26,039

(48,407) (48,407) Taxation and Non-Specific Grant Income 5 (49,672) (49,672) 16,633(Surplus) or Deficit on Provision of Services (26,941)

956 (Surplus) or Deficit on Revaluation of Non Current Assets (989) 136,284 Actuarial (Gains) / Losses on Pension Assets / Liabilities (32,170) 137,240 Other Comprehensive Income and Expenditure (Surplus)/Deficit (33,159)

153,873 Total Comprehensive Income and Expenditure (Surplus)/Deficit (60,100)

4

BALANCE SHEET

The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Authority. The net assets of the Authority (assets less liabilities) are matched by the reserves held by the Authority. Reserves are reported in two categories. The first category of reserves are usable reserves, i.e. those reserves that the Authority may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example the Capital Receipts Reserve that may only be used to fund capital expenditure or repay debt). The second category of reserves includes amounts would only become available to provide services if the assets are sold; and reserves that hold timing difference shown in the Movement in Reserves Statement line ‘Adjustments between account basis and funding basis under regulations.

Restated Restated 01-Apr-09 31-Mar-10 31-Mar-11 £'000 £'000 Note(s) £'000 60,956 60,379 Property, Plant & Equipment 16,17 60,280 298 358 Intangible Assets 19 376 61,254 60,737 Long Term Assets 60,656

408 359 Inventories 22 413 3,700 8,000 Short Term Investments 11,000 5,912 4,098 Short Term Debtors 22 4,053

270 716 Cash and Cash Equivalents 764 10,290 13,173 Current Assets 16,229

(3,054) (3,858) Short Term Creditors 22 (3,360) (1,022) (1,460) Short Term Borrowing (1,511) (4,076) (5,318) Current Liabilities (4,871) (16,715) (15,765) Long Term Borrowing 23 (17,613) (324,109) (479,312) Other Long Term Liabilities (421,408) (340,824) (495,077) Long Term Liabilities (439,021)

(273,356) (426,485) Net Assets (367,006)

5,765 7,922 Usable Reserves 10,606 (279,121) (434,407) Unusable Reserves (377,612)

(273,356) (426,485) Total Reserves (367,006)

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CASH FLOW STATEMENT

The Cash Flow Statement shows the changes in cash and cash equivalents of the Authority during the reporting period. The statement shows how the Authority generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Authority are funded by way of taxation and grant income or from the recipients of services provided by the Authority. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Authority’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the Authority.

Restated 31-Mar-10 31-Mar-11 £'000 Note(s) £'000 16,633 Net (Surplus) or Deficit on the Provision of Services (26,941)

Adjust Net Surplus or Deficit on the Provision of Services for Non (23,083) Cash Movements 22,271

Adjust for items included in the Net Surplus or Deficit on the 753 Provision of Services that are Investing and Financing Activities 940 (5,697) Net Cash Flows from Operating Activities (3,730)

6,823 Investing Activities 25 5,334 (1,572) Financing Activities 25 (1,652)

(446) Net (Increase) or Decrease in Cash and Cash Equivalents (48)

Cash and Cash Equivalents at the Beginning of the 270 Reporting Period 716 Cash and Cash Equivalents at the End of the Reporting 716 Period 764

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NOTES TO THE FINANCIAL STATEMENTS

STATEMENT OF ACCOUNTING POLICIES

1. Accounting Policies The Fire Authority Financial Statements must meet the accounting requirements of the CIPFA Code of Practice on Local Authority Accounting which has been agreed with HM Treasury. Consequently, the following financial statements have been prepared in accordance with the CIPFA Code of Practice on Local Authority Accounting 2010/11. The accounting policies contained in the CIPFA Code of Practice follow International Financial Reporting Standards to the extent that they are meaningful and appropriate to Local Authority Accounts, as determined by HM Treasury, which is advised by the Financial Reporting Advisory Board. Where the CIPFA Code of Practice on Local Authority Accounts permits a choice of accounting policy, the accounting policy which is judged to be the most appropriate to the particular circumstances of the Authority for the purpose of presenting fairly the position of the Authority is selected. The particular policies adopted by the Authority are described below. They have been applied consistently in dealing with items considered material in relation to the Accounts.

1.1 Accounting convention Theses Accounts have been prepared under the historical cost convention modified to account for the revaluation of property, plant and equipment, intangible assets and inventories. Where appropriate financial assets and liabilities have been impaired or discounted to bring them to fair value.

1.2 Acquisitions and discontinued operations Activities are considered to be ‘acquired’ only if they are taken on from outside the public sector. Activities are considered to be ‘discontinued’ only if they cease entirely. They are not considered to be ‘discontinued’ if they transfer from one public sector body to another. The Authority has not acquired or discontinued any operations during the reporting period.

1.3 Going Concern After making enquires, the Authority has formed a judgement at the time of approving the financial statements that there is a reasonable expectation that the Authority has access to adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Accounts.

1.4 Critical accounting judgements and key sources of estimation uncertainty In the application of the Authority’s accounting policies, management are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates and the estimates and underlying assumptions are continually reviewed. Revisions to accounting estimates are recognised in the period which the estimate is revised and if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

1.4.1 Critical judgements in applying accounting policies The following are the critical judgements, apart from those involving estimations (see below) that management has made in the process of applying the Authority’s accounting policies and that have the most significant effect of the amounts recognised in the financial statements.

1.4.2 Key Sources of estimation uncertainty The following are the areas of key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Property, Plant and Equipment Pensions Liability and Reserve

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1.5 Revenue Revenue in respect of services provided is recognised when the performance occurs, and is measured at the fair value of the consideration receivable. Where income is received for a specific activity that is to be delivered in the following year the income is deferred. Goods are sold on an incidental basis. Income is recognised at the point the sale transaction occurs.

1.6 Apportionment of overheads Management and Support Services expenditure is allocated over Service areas using estimated gross pay as originally stated in the original 2010/11 budget.

1.7 Agency income Precept income is collected on behalf of the Authority by the four unitary authorities (East Riding of Yorkshire Council, Kingston Upon Hull City Council, North East Lincolnshire Council and North Lincolnshire Council); this income is collected under an agency arrangement with the Authority including an appropriate share of taxpayer transactions within the financial statements.

1.8 Employee Benefits

Retirement benefit costs The Authority participates in three pension schemes, two for Firefighters and one for Support staff. All of the schemes provide members with defined benefits related to pay and service.

Firefighters The 1947 Firefighters’ Pension scheme involves officers paying contributions of 11%. The 2006 Firefighters’ Pension Scheme was introduced in 2006 and provides different benefits to the 1947 scheme. The 2006 scheme which all new recruits can join has a contribution rate of 8.5%. The Fire Authority Accounts for Firefighter pensions through the Firefighters’ Pensions fund account. The cost to the Authority is via an employers’ contribution and a capital charge for Officers who retire on ill health. Central Government provides/receives any balance on the Pension fund account.

The Liability for Injury awards are included within the liabilities of the Authority with defined contributions made by the Authority for Injury awards.

Support Staff The Fire Authority is an admitted body to the East Riding pension fund, which is administered by the East Riding of Yorkshire Council. Support staff are eligible to join the Local Government pension scheme which has varying contribution rates based on a members’ salary. The Authority makes employers contributions as required into the East Riding Pension fund.

The Authority has fully adopted IAS 19 Employee benefits with the exception of outstanding Annual Leave as described below. The financial statements reflect the commitment to make up any shortfall in attributable net assets in the pension fund. The overall pension liability is included in the Balance Sheet and service costs are reflected in the Comprehensive Income and Expenditure Statement.

Outstanding Annual Leave at 31st March The CIPFA Code of Practice on Local Authority Accounting requires the Authority to recognise the amount of untaken annual leave at the 31st March as a liability which is reflected on the Balance Sheet. To ensure consistency Annual leave costs have been reflected in the year in which the annual leave is taken and the value of the liability has not been reflected in the financial statements if it is below £300,000.

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1.9 Other Expenses Other operating expenses are recognised when, and to the extent that, the goods or services have been received. They are measure at the fair value of the consideration payable.

1.10 Property, plant and equipment

Recognition Property, plant and equipment is capitalised if:  it is held for use in delivering services or for administration purposes;  it is probable that service potential will be provided to the Authority;  it is expected to be used for more than one financial year;  the cost of the item can be measured reliably; and  the item has a cost of at least £6,000

Where a large asset, for example a building, includes a number of components with significantly different asset lives (a minimum of 5 years), the components are treated as separate assets if they have a cost that is a significant proportion of the whole asset (a minimum of 25%). The components are treated as separate assets and depreciated over their useful economic life.

Donated Assets are recognised at their value and are defined in the CIPFA Code of Practice on Local Government Accounting as those assets that are transferred at nil value or acquired at less than fair value. Donated assets that are from other public bodies are accounted for as a government grant (as required by IAS 20).

Valuation All property, plant and equipment are measured initially at cost, representing the cost attributable to acquiring or constructing the asset and bringing it to the location and condition necessary for it to be capable of operating in the manner intended by management. All assets are measured subsequently at fair value.

Land and buildings used by the Authority are stated in the Balance sheet at their re-valued amounts, being the fair value at the date of valuation. Revaluations are performed with sufficient regularity to ensure that carrying amounts are not materially different from those that would be determined at the end of the reporting period. Fair values are determined as follows:  Operational Buildings – Depreciated Replacement cost  Land and non specialised buildings – market value for existing use  Vehicles, plant and equipment – historic cost less accumulated depreciation (as a proxy for current replacement cost)

Properties in the course of construction are carried at cost, less any impairment loss. Cost includes professional fees but not borrowing costs, which are recognised as expenses immediately, as allowed by IAS 23 for assets held at fair value. Assets are re-valued and depreciation commences when they are brought into use.

An increase arising on revaluation is taken to the revaluation reserve except when it reverses an impairment previously recognised in expenditure, in which case it is credited to expenditure to the extent of the decrease previously charged there. A revaluation decrease is recognised as an impairment charged to the revaluation reserve to the extent that there is a balance on the reserve for the asset, and, thereafter, to expenditure. Gains and losses recognised in the revaluation reserve are reported as other comprehensive income in the Statement of Comprehensive Income.

Subsequent expenditure Where subsequent expenditure enhances an asset beyond its original specification, the directly attributable cost is capitalised. Where subsequent expenditure restores the asset to its original specification, the expenditure is capitalised and any existing carrying value of the item replaced is written-off and charged to the Statement of Comprehensive Income.

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Disposals

Capital receipts from the sale of non current assets are held in the capital receipts unapplied account until such time as they are used to finance other capital expenditure or to repay debt. Gains and losses on the disposal of non current assets are recognised in the Comprehensive Income and Expenditure Statement.

1.11 Intangible Assts

Recognition Intangible assets are non-monetary assets without physical substance, which are capable of sale separately from the rest of the Authority’s business or which arise from contractual or other legal rights. They are recognised only when it is probable that future economic benefits or service potential will be provided to, the Authority; where the cost of the asset can be measured reliably, and where the cost is at least £6,000.

Intangible assets acquired separately are initially recognised at fair value. Software that is integral to the operating of hardware, for example an operating system is capitalised as part of the relevant item of property, plant and equipment. Software that is not integral to the operation of hardware, for example application software, is capitalised as an intangible asset. Expenditure on research is not capitalised: it is recognised as an operating expense in the period in which it is incurred. Internally-generated assets are recognised if, and only if, all of the following have been demonstrated:

 the technical feasibility of completing the intangible asset so that it will be available for use  the intention to complete the intangible asset and use it  the ability to sell or use the intangible asset  how the intangible asset will generate probable future economic benefits or service potential  the availability of adequate technical, financial and other resources to complete the intangible asset and sell or use it  the ability to measure reliably the expenditure attributable to the intangible asset during its development

Measurement The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the criteria are initially met. Where no internally- generated intangible assets can be recognised, the expenditure is recognised in the period in which it is incurred.

Following initial recognition, intangible assets are carried at fair value by reference to an active market, or where no active market exists, at amortised replacement cost (modern equivalent assets basis). Internally-developed software is held at historic cost to reflect the opposing effects of increases and development costs and technological advances.

1.12 Depreciation, amortisation and impairments

Freehold land and properties under construction are not depreciated. Otherwise, depreciation and amortisation are charged to write off the costs or valuation of property, plant and equipment and intangible non-current assets, less any residual value, over their estimated useful lives, on a straight line basis (with the exception of assets acquired under finance leases). The estimated useful life of an asset is the period over which the Authority expects to obtain economic benefits or service potential from the asset. This is specific to the Authority and may be shorter than the physical life of the asset itself. Estimated useful lives and residual values are reviewed each year end, with the effect of any changes recognised on a prospective basis. Assets held under finance leases are depreciated over their estimated useful lives. The approximate average useful lives (depreciation periods) are included below:

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 Buildings 40 years  Vehicles – Fire Appliances 15 years  Vehicles – Mobile Workshops 10 years  Vehicles – Lorries and Vans 7 years  Vehicles – Cars and Light Vans 5 years  Equipment 5 years

Assets acquired under Finance leases are depreciated over the term of the lease (or the life of the asset if this is lower than the term of the lease) on a straight line basis.

At each reporting period end, the Authority checks whether there is any indication that any of its tangible or intangible non current assets have suffered an impairment loss. If there is indication of an impairment loss, the recoverable amount of the asset is estimated to determine whether there has been a loss and, if so, its amount. Intangible assets not yet available for use are tested for impairment annually.

If there has been an impairment loss, the asset is written down to its recoverable amount, with the loss charged to the revaluation reserve to the extent that there is a balance on the reserve for the asset and, thereafter, to expenditure. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount but capped at the amount that would have been determined had there been no initial impairment loss. The reversal of the impairment loss is credited to expenditure to the extent of the decrease previously charged there and thereafter to the revaluation reserve.

The Authority is not required to raise council tax to cover depreciation, impairment or amortisation, however it is required to make an annual provision from its revenue budget to contribute towards the reduction in its overall borrowing requirement, the minimum revenue provision (MRP). This is equal to 4% of the adjusted capital financial requirement at 31 March 2009 and subsequent supported borrowing, together with an amount equal to any capital expenditure funded from unsupported borrowing, apportioned over the estimated life of the asset.

1.13 Government Grants Government grants are grants from government bodies. Revenue grants are matched against the expenditure to which they relate. Capital grants are credited to income once any conditions of the grant have been satisfied. Assets purchased from government grants are valued, depreciated and impaired as described for purchased assets.

1.14 Non-current assets held for sale Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met when the sale is highly probable, the asset is available for immediate sale in its present condition and management is committed to the sale, which is expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current assets held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Fair value is open market value including alternative uses.

The profit or loss arising on the disposal of an asset is the difference between the sale proceeds and the carrying amount and is recognised in the Comprehensive Income and Expenditure Statement. On disposal, the balance for the asset on the revaluation reserve is transferred to the Capital Adjustment Account.

Property, plant and equipment that is to be scrapped or demolished does not qualify for recognition as held for sale. Instead, it is retained as an operational asset and its economic life is adjusted. The asset is de-recognised when it is scrapped or demolished.

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1.15 Leases

Leases are classified as finance leases when substantially all of the risks and rewards of ownership are transferred to the lessee. All other leases are classified as operating leases.

The Authority as a lessee The Authority has a number of assets held under a finance lease (Vehicles). The outstanding liability relating to finance leases is reflected in the Authority’s Balance Sheet, with the assets acquired under finance leases added to the Authority’s asset register and the value reflected in the Property, plant and equipment total on the Balance Sheet. Interest costs relating to finance leases are reflected in the Comprehensive Income and Expenditure Statement. Payments for Finance leases are made in equal amounts over the term of the lease. Operating lease payments are recognised as an expense on straight-line basis over the lease term. Lease incentives are recognised initially as a liability and subsequently as a reduction of rentals on a straight-line basis over the lease term.

Where a lease is for land and buildings, the land and building components are separated. Leased land is treated as an operating lease. Leased buildings are assessed as to whether they are operating or finance leases.

1.16 Private Finance Initiative (PFI) transactions HM Treasury has determined that government bodies shall account for infrastructure PFI schemes where the government body controls the use of the infrastructure during the service concession period together with the residual interest in the infrastructure at the end of the period. This follows the principles of the requirements of IFRIC 12. The Authority therefore recognises the PFI asset as an item of property, plant and equipment together with a liability to pay for it. The services received under the contract are recorded as operating expenses. The Authority has not entered into any PFI transactions.

1.17 Inventories Inventories are valued at the lower of cost and net realisable value using the average cost method. This is considered to be a reasonable approximation to fair value.

1.18 Cash and cash equivalents Cash is cash in hand and deposits with any financial institution repayable without penalty on notice of not more than 24 hours. The balances on the current account and the business reserve account are cash. The balance in the Liquidity Manager Account is a cash equivalent (as this is held for investment purposes until a sufficient balance is achieved and a short term investment entered into). In the Cash Flow Statement, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and that form an integral part of the Authority’s cash management.

1.19 Provisions Provisions are recognised when the Authority has a present legal or constructive obligation as a result of a past event, it is probable that the Authority will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the end of the reporting period, taking into account the risks and uncertainties.

Currently the Authority has no provisions

1.20 Contingencies A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Authority, or a present obligation that is not recognised because it is not probable that a payment will be required to settle the obligation or the amount of the obligation cannot be measured sufficiently reliably. A contingent liability is disclosed unless the possibility of payment is remote.

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A contingent asset is a possible asset that arises from past events and existence of which will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Authority. A contingent asset is disclosed where an inflow of economic benefits is virtually certain.

Where the time value of money is material, contingencies are disclosed at their present value.

1.21 Reserves The Authority sets aside specific reserves for future policy purposes. The Authority has six revenue reserves:  Control reserve  Property Maintenance reserve  Insurance Reserve  Water Rescue Equipment reserve  Personal Protective Equipment reserve  General reserve The Authority has three capital reserves:  Capital adjustment account  Revaluation reserve  Capital receipts reserve Other reserves held by the Authority, are held to meet accounting requirements:  Pensions reserve  Collection fund adjustment account

Details of these reserves are provided in the relevant note to the Accounts.

1.22 Financial assets Financial assets are recognised when the Authority becomes party to the financial instrument contract or in the case of trade receivables, when goods or services have been delivered. Financial assets are derecognised when the contractual rights have expired or the asset has been transferred.

Financial assets are initially recognised at fair value.

Financial assets are classified into the following categories: financial assets at fair value through profit and loss; held to maturity investments; available for sale financial assets, and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments which are not quoted in an active market. After initial recognition, they are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised using the effective interest method.

Fair value is determined by reference to quoted market prices where possible, or failing that by reference to similar arms length transactions between knowledgeable and willing parties.

The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset.

At the end of the reporting period the Authority assesses whether any financial assets, other than those held at ‘fair value through profit and loss’ are impaired. Financial assets are impaired and impairment losses recognised if there is objective evidence of impairment, as a result of one or more events which occurred after the initial recognition of the asset and which has an impact on the estimated future cash flows of the asset.

For financial assets carried at amortised cost, the amount of the impairment loss is measured as the difference between the assets carrying amount and the present value of the revised

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future cash flows discounted at the asset’s original effective interest rate. The loss is recognised in expenditure and the carrying amount of the asset reduced directly.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through expenditure to the extent that the carrying amount of the receivable at the date of the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. Financial Liabilities Financial liabilities are recognised in the Balance Sheet when the Authority becomes party to the contractual provisions of the financial instrument or, in the case of trade payables, when the goods or services have been received. Financial liabilities are de-recognised when the liability has been discharged, that is, the liability has been paid or expired.

Financial liabilities are recognised at fair value.

1.23 Foreign Currencies The Authority’s functional currency and presentational currency is sterling. Transactions denominated in a foreign currency are translated into sterling at the exchange rate ruling on the date of transactions. At the end of the reporting period, monetary items denominated in foreign currencies are retranslated at the spot exchange rate on 31 March. Resulting exchange gains and losses from either of these are recognised in the Authority’s surplus/deficit in the period in which they arise.

1.24 Joint operations Joint operations are activities undertaken by the Authority in conjunction with one or more other parties but which are not performed through a separate entity.

1.25 Accounting standards that have been issued but have not yet been adopted All accounting standards that have been issued by the IASB and IFRIC have been adopted with the exception of FRS 30 Heritage assets. The Authority holds a collection of fire memorabilia which does not have a significant value.

1.26 Accounting standards issued that have been adopted early There are no accounting standards issued that have been adopted early.

1.27 Exceptional items Exceptional items shall be included in the costs of the service to which they relate and noted accordingly.

1.28 Extraordinary items Extraordinary items shall be disclosed on the face of the Comprehensive Income and Expenditure Statement and explained in a note.

1.29 Prior Period Adjustments Unless otherwise sanctioned by the Code of Practice on Local Authority Accounting, material prior period adjustments shall result in restatement of prior year figures and disclosure of the effect.

1.30 Events after the balance sheet date Material events after the balance sheet date shall, be disclosed as a note to the Accounts and amend the financial statements as required. Other events after the balance sheet date will be disclosed in a note with an estimate of the likely effect.

1.31 Group Accounts Each reporting period the Authority will review its interests and influence on all types of entities including, but not limited to, other authorities and similar statutory bodies, common good trust funds, charities, companies, joint committees and other joint arrangements. If appropriate, then group Accounts will be prepared in accordance with the Code of Practice on Local Authority Accounting.

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1.32 VAT

Where output tax is charged or input VAT is recoverable, the amounts are stated net of VAT. Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase cost of fixed assets.

2. ADJUSTMENTS BETWEEN ACCOUNTING BASIS AND FUNDING BASIS UNDER REGULATIONS

2010/11 2009/10 £'000 £'000 £'000 Restated Amounts included in the Comprehensive Income & Expenditure Account but required by statute to be excluded when determining the Movement on the General Fund balance for the year: Depreciation and impairment of non current assets (4,304) (2,817) Net profit on sale of non current assets 23 13 Grants and contributions deferred 917 21 Collection Fund Adjustment (47) 80 Net Charges made for retirement benefits in accordance with IAS 19 Local Government Pension Scheme 1,178 (779) Fire Fighters' Pension Scheme 19,546 (21,431)

17,313 (24,913)

Amounts not included in the Comprehensive Income and Expenditure Account but required by statute to be included when determining the movement on the General Fund balance for the year: Minimum Revenue Provision 1,384 1,078 Revenue Contributions to Capital Outlay 298 - Employer's Contributions Payable to Pension Funds Local Government Pension Scheme 978 881 Fire Fighters' Pension Scheme 4,372 4,494

7,032 6,453

Transfers to or from Fund Balances that are required to be taken into account when determining the Movement on the General Fund balance Revenue Reserve - - Water Rescue Equipment Reserve - - Personal Protective Equipment Reserve - -

- -

Net additional amount required to be debited(credited) to the General Fund Balance 24,345 (18,460)

Appropriations to the Pensions Reserve for the year: Reversal of IAS 19 Entries Local Government Pension Scheme (1,178) 779 Fire Fighters' Pension Scheme (13,350) 27,790 Employer Contributions Local Government Pension Scheme (978) (894) Payments to Pensioners Fire Fighters' Pension Scheme (12,410) (13,260) Employee Contributions Fire Fighters' Pension Scheme 2,430 2,420

Net additional amount required to be debited(credited) to the Pension Reserve (25,486) 16,835

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3. EXCEPTIONAL ITEMS

There are no exceptional items

4. SEGMENTAL ANALYSIS

REVENUE OUTTURN

Humberside Fire and Rescue Service Service Information For the year ended 31 March 2011

Fire Fighting and Community Fire Rescue Operations Safety Other Direct Total £000s £000s £000s £000s Fees, charges & other service income (570) (333) (50,956) (51,859) Government grants (174) 0 (6,196) (6,370) Total Income (744) (333) (57,152) (58,229)

Employee expenses 29,811 4,437 0 34,248 Other operating expenses 18,268 2,140 288 20,696 Support Service Recharges 0 Total operating expenses 48,079 6,577 288 54,944

Net Cost of Services 47,335 6,244 (56,864) (3,285)

Reconciliation to Net Cost of Services in Comprehensive Income and Expenditure Statement £000s Cost of Services in Service Analysis (3,285)

Net Cost of Services - Continuing Operations in Comprehensive Income and Expenditure Statement (3,285)

Reconciliation to Subjective Analysis Service Net Cost of Corporate Total Analysis Services Amounts £000s £000s £000s £000s Fees, charges & other service income (51,859) (51,859) (51,859) Surplus or deficit on associates and joint ventures 0 0 0 0 Interest and investment income 0 0 (81) (81) Income from council tax 0 0 (22,497) (22,497) Government grants and contributions (6,370) (6,370) (27,175) (33,545) Total Income (58,229) (58,229) (49,753) (107,982)

Employee expenses 34,248 34,248 27,808 62,056 Other service expenses 20,696 20,696 20,696 Support Service recharges 0 00 Depreciation, amortisation and impairment 0 0 (2,671) (2,671) Interest Payments 0 0 983 983 Precepts & Levies 0 0 0 0 Payments to Housing Capital Receipts Pool 0 00 Gain or Loss on Disposal of Fixed Assets 0 0 (23) (23) Total operating expenses 54,944 54,944 26,097 81,041

Surplus or deficit on the provision of services (3,285) (3,285) (23,656) (26,941)

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2009/10 Comparative figures 2009/1020 Humberside Fire and Rescue Service Service Information For the year ended 31 March 2010

Fire Fighting and Community Fire Rescue Operations Safety Other Direct Total £000s £000s £000s £000s Fees, charges & other service income (357) (229) (19) (605) Government grants (121) (17) (6,359) (6,497) Total Income (478) (246) (6,378) (7,102)

Employee expenses 29,445 4,051 2 33,498 Other operating expenses 14,034 1,832 311 16,177 Support Service Recharges 0 Total operating expenses 43,479 5,883 313 49,675

Net Cost of Services 43,001 5,637 (6,065) 42,573

Reconciliation to Net Cost of Services in Comprehensive Income and Expenditure Statement £000s Cost of Services in Service Analysis 42,573

Net Cost of Services - Continuing Operations in Comprehensive Income and Expenditure Statement 42,573

Reconciliation to Subjective Analysis Service Net Cost of Corporate Total Analysis Services Amounts £000s £000s £000s £000s Fees, charges & other service income (605) (605) (605) Surplus or deficit on associates and joint ventures 0 0 0 0 Interest and investment income 0 0 (52) (52) Income from council tax 0 0 (22,088) (22,088) Government grants and contributions (6,497) (6,497) (26,318) (32,815) Total Income (7,102) (7,102) (48,458) (55,560)

Employee expenses 33,498 33,498 23,813 57,311 Other service expenses 16,177 16,177 0 16,177 Support Service recharges 0 0 0 0 Depreciation, amortisation and impairment 0 0 (1,626) (1,626) Interest Payments 0 0 344 344 Precepts & Levies 0 00 Payments to Housing Capital Receipts Pool 0 0 0 0 Gain or Loss on Disposal of Fixed Assets 0 0 (13) (13) Total operating expenses 49,675 49,675 22,518 72,193

Surplus or deficit on the provision of services 42,573 42,573 (25,940) 16,633

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5. OTHER OPERATING EXPENDITURE, FINANCING AND INVESTMENT INCOME, TAXATION AND NON SPECIFIC GRANTS

The details of these amounts are provided below:

Ref 2010/11 2009/10 Other Operating Expenditure £000s £000s (Profit)/Loss on the disposal of assets (23) (13) Total Other Operating Expenditure 5 (23) (13)

Financing and Investment Income and Expenditure Interest Payable 983 344 Interest Receivable (81) (52) Pensions Interest Cost and Expected Return on Pension Assets - Fire Fighters 24,850 21,850 - Local Government Pension Scheme 287 338 Total Financing and Investment Income and Expenditure 5 26,039 22,480

Taxation and Non Specific Grant Income Council Tax Payers 22,497 22,089 General Government Grants 3,446 4,935 National Non Domestic Rates 23,729 21,383 Total Taxation and Non Specific Grant Income 5 49,672 48,407

There is a material impairment included in the Comprehensive Income and Expenditure Statement (This is disclosed in note 20).

6. MEMBERS’ ALLOWANCES

From 1 April 2003 the Authority is required to have its own scheme of Members’ Allowances under the terms of the Local Authorities (Members’ Allowances) (England) Regulations 2003. The total amount paid to Members under this scheme for 2010/11 was £131,318. (2009/10 was £126,130)

111 18

7. OFFICERS’ EMOLUMENTS

Regulation 4 of the Accounts and Audit (Amendment No.2) (England) Regulations 2009 [SI 2009 No. 3322] introduce a new legal requirement to increase transparency and accountability in Local Government for reporting remuneration of senior employees.

The number of employees whose remuneration, excluding employer’s pension contributions was £50,000 or more in bands of £5,000 are disclosed below:

Remuneration Number of Officers in Band Band 2010/11 2009/10 Operational Non Total Operational Non Total Operational Operational

£150-154,999 ------£145-149,999 ------£140-144,999 ------£135-139,999 1 - 1 1 - 1 £130-134,999 ------£125-129,999 ------£120-124,999 ------£115-119,999 - - - 1 - 1 £110-114,999 1 - 1 - - - £105-109,999 1 - 1 2 - 2 £100-104,999 ------£95-99,999 - 2 2 - 2 2 £90-94,999 1 - 1 - - - £85-89,999 ------£80-84,999 ------£75-79,999 ------£70-74,999 ------£65-69,999 213 4- 4 £60-64,999 1 - 1 - 1 1 £55-59,999 1411513- 13 £50-54,999 426 5 27

25 6 31 26 5 31

112 19

The following table sets out the remuneration disclosures for Senior Officers whose salary is less than £150,000 but equal to or more than £50,000 per year:

Disclosure for 2010/11

Post Title Salary Benefits in Total Employer's Total Kind (e.g. Remuneration pension Remuneration Car excluding contributions including Allowance) employer's 2009/10 employer's pension pension contributions contributions 2009/10 2009/10 £££££

Chief Fire Officer & Chief Executive 135,779 - 135,779 28,921 164,700

Deputy Chief Fire Officer & Director of Policy & Performance 1st May-31st Mar 11 105,794 - 105,794 22,534 128,328

Deputy Chief Fire Officer & Director of Policy & Performance 1st Apr-30th Apr 10 10,623 - 10,623 2,263 12,886

Assistant Chief Fire Officer & Director of Personal & Organisational Development 108,623 - 108,623 23,137 131,760

Assistant Chief Fire Officer & Director of Community Protection 1st Jun-31st Dec 10 63,363 - 63,363 13,496 76,859

Assistant Chief Fire Officer & Director of Community Protection 1 Apr 10-30 Apr 10 9,052 - 9,052 1,928 10,980

Secretary to the Fire Authority & Director of Corporate Administration 95,045 1,107 96,152 19,389 115,541

Director of Finance & S.151 Officer 95,045 2,056 97,101 19,389 116,490

623,324 3,163 626,487 131,057 757,544 Disclosure for 2009/10

Post Title Salary Benefits in Total Employer's Total Kind (e.g. Remuneration pension Remuneration Car excluding contributions including Allowance) employer's 2009/10 employer's pension pension contributions contributions 2009/10 2009/10 £££££

Chief Fire Officer & Chief Executive 136,115 - 136,115 28,993 165,108

Deputy Chief Fire Officer & Director of Policy & Performance 115,698 221 115,919 24,644 140,563

Assistant Chief Fire Officer & Director of Personal & Organisational Development 108,892 - 108,892 23,194 132,086

Assistant Chief Fire Officer & Director of Community Protection 108,892 - 108,892 23,194 132,086

Secretary to the Fire Authority & Director of Corporate Administration 95,280 1,689 96,969 19,437 116,406

Director of Finance & S.151 Officer 95,280 1,705 96,985 19,437 116,422

660,157 3,615 663,772 138,899 802,671

113 20

8. RELATED PARTY TRANSACTIONS

Government Grants

The table below shows grants received by the Fire Authority:

£'000 £'000 2010/11 2009/10 New Burdens 154 103 New Dimensions 80 18 Local Area Agreement - 17 Capital Grant 917 739

1,151 877

Precepts

The Authority, at its meeting on 15th February 2010, set a precept for 2010/11 equivalent to a Band D Council Tax of £77.92. Precepts and Collection Fund balances received from the four constituent Authorities for 2010/11 are as follows:

Precepts Collection Fund Surplus/(Deficit) Total 2010/11 Residual 31 March 2011 2010/11 2009/10 £'000 £'000 £'000 £'000

Kingston upon Hull City Council 5,422 2 62 5,486 East Riding of Yorkshire Council 9,210 4 95 9,309 North East Lincolnshire Council 3,696 (77) 73 3,692 North Lincolnshire Council 3,960 (32) 83 4,011

22,288 (103) 313 22,498

2009/10

Precepts Collection Fund Surplus/(Deficit) Total 2009/10 Residual 31 March 2010 2009/10 2008/9 £'000 £'000 £'000 £'000

Kingston upon Hull City Council 5,282 15 52 5,349 East Riding of Yorkshire Council 9,028 (43) 138 9,123 North East Lincolnshire Council 3,606 (4) 81 3,683 North Lincolnshire Council 3,882 (36) 88 3,934

21,798 (68) 359 22,089

Pensions

See note 24 of the Notes to the Core Financial Statements.

114 21

Services

The Authority received services, under contract, from local authorities during 2010/11 as follows:

Refuse Grounds Support Total Collection Maint. Services £'000 £'000 £'000 £'000

Kingston upon Hull City Council 16 - 7 23 East Riding of Yorkshire Council 7 5 - 12 North Lincolnshire Council 3 - - 3 North East Lincolnshire Council - 1 - 1

26 6 7 39

2009/10

Refuse Grounds Support Total Collection Maint. Services £'000 £'000 £'000 £'000

Kingston upon Hull City Council 15 - 6 21 East Riding of Yorkshire Council 7 5 - 12 North Lincolnshire Council 3 - - 3 North East Lincolnshire Council - - - -

25 5 6 36

Other Related Party transactions

During the course of 2010/11 no Members or senior officers of the Fire Authority, their close relations or members of the same household, undertook any declarable related party transactions with the Authority. The Authority requires Members and senior officers to complete a declaration of related party transactions, and these declarations are used as the basis of this note. The disclosure note itself has been prepared in accordance with guidance on the interpretation of IAS 24 (Related Party Transactions) and its applicability to the public sector.

REGIONAL MANAGEMENT BOARD

The Yorkshire and Humberside Regional Management Board (RMB) is a joint committee set up by the four Fire Authorities in the region (Humberside, North, South and West Yorkshire). It is responsible for carrying forward six strategic tasks on behalf of all four Authorities – resilience, common services, regional control rooms, procurement, training and personnel management. The Regional Management Board was dissolved at the 28th September 2010 meeting.

9. AUDIT COSTS

During 2010/11 the Authority incurred the following Audit Commission fees relating to external audit and inspection:

2010/11 2009/10 £'000 £'000 Fees payable to the Audit Commission with regard to 70 75 external audit services carried out by the appointed auditor Fees payable to the Audit Commission in respect of - - statutory inspection 70 75

115 22

10. CAPITAL EXPENDITURE AND NON CURRENT ASSET DISPOSALS

Capital Expenditure

Capital expenditure incurred by the Authority during 2010/11 with comparatives for 2009/10 and the sources of financing are as follows:

Category of Asset Category of Asset 2009/10 2010/11

£'000 £'000

Land & Buildings Land & Buildings Hornsea Refurbishment 16 Beverley Refurbishment 7 Beverley Refurbishment 212 Pockilington Refurbishment 19 Goole Refurbishment 108 Goole Refurbishment 225 Kirton Lindsey Refurbishment 2 Snaith Refurbishment 19 Grimsby, Peaks Lane Refurbishment 532 Grimsby, Peaks Lane Refurbishment 106 Waltham Refurbishment 13 Service Headquarters 96 Service Headquarters 174

Vehicles 919 Vehicles 1,569

Plant & Equipment Plant & Equipment IT Equipment 295 IT Equipment 353 Personal Protective Equipment 881 Equipment 433 Equipment 637

3,340 3,276 Source of Finance Source of Finance

£'000 £'000

Loan - Supported Borrowing 997 Loan - Supported Borrowing 969

- Un supported Borrowing 1,129 - Un supported Borrowing 1,523

Grants 916 Grants 739

Capital Contributions 298 Capital Contributions 45

3,340 3,276

Note : Expenditure on buildings in the year will not necessarily result in an increase in value on the Balance Sheet until the point at which the relevant assets are revalued (see table above and note 19 of the Notes to the Core Financial Statements). The value of de-minimis items of expenditure transferred to the Capital Adjustment Account for 2010/11 was nil (2009/10 was also nil).

116 23

Capital Financing Requirement

Movements in the Capital Financing Requirement for the year 2010/11 are shown in the table below:

2010/11 2009/10 £'000 £'000

Opening Capital Financing Requirement 15,251 13,837

Capital Investment Operational Assets 3,340 3,276 Non Operational Assets - -

Sources of Finance Capital Receipts - Government Grant & Contributions (917) (784) Minimum Revenue Provision (1,384) (1,078) Revenue Contributions to Capital Outlay (298) -

15,992 15,251

Explanation of Movements in Year Increase in the Underlying Need to Borrow Supported by Government Financial Assistance 997 969 Unsupported by Government Financial Assistance (256) 445

741 1,414

Disposal of Fixed Assets

During 2010/11 the Authority received capital receipts of £89,098 for the sale of obsolete land, buildings and vehicles. (£12,992 during 2009/10)

117 24

11. FINANCE LEASES

The Authority has a number of vehicles that have been acquired under finance leases.

The assets acquired under these leases are carried as Property, Plant and Equipment in the Balance Sheet at the Following net Amounts:

2010/11 2009/10 2008/9 £'000 £'000 £'000 Vehicles 1,789 2,065 2,618 1,789 2,065 2,618

The Authority is committed to making minimum payments under these leases comprising settlement of the long-term liability for the interest in the property acquired by the Authority and finance costs that will be payable by the Authority in future years while the liability remains outstanding. The minimum lease payments are made up of the following amounts:

2010/11 2009/10 2008/9 £'000 £'000 £'000 Finance lease liabilities (net present value of minimum lease payments): 1,893 2,203 2,619 Current 94 112 132 Non Current - Finance Costs payable in Future Years 209 303 274 2,196 2,618 3,025

The minimum lease payments will be payable over the following periods:

Minimum Lease Finance Lease 2010/11 2009/10 2010/11 2009/10 £'000 £'000 £'000 £'000 Not later than one year 455 534 430 504 Later than one year and not later than five years 1,545 1,708 1,283 1,416 Later than five years 196 376 340 297 2,196 2,618 2,053 2,217

12. OPERATING LEASES

The Authority has not entered into any operating leases during 2010/11, and previous operating leases have been reclassified as finance leases under IFRS. (Please see note 10 above)

13. DEFERRED LIABILITIES

Deferred Liabilities consist of liabilities which by arrangement are payable beyond the next year at some point in the future or are paid off by an annual sum over a period of time. The Authority had no deferred liabilities at the 31 March 2011 (2009/10 was also nil)

118 25

14. COMMITMENTS UNDER CAPITAL CONTRACTS

Below is a table of outstanding commitments under capital contracts as at 31 March 2011. 2010/11 capital investment will take place during 2011/12.

2011 2010 £'000 £'000 Building Refurbishments 51 747

Command and Control System - VISION - 99

51 846

15. ANALYSIS OF PROPERTY, PLANT & EQUIPMENT

The table below analyses the major types of asset and the numbers held in each category:

No. Held No. Held Category of Asset 31.03.11 31.03.10

Operational Land & Buildings Brigade Headquarters 1 1 Fire Stations 30 30 Other Offices 2 2

Non Operational Land & Buildings Fire Stations - 1

Vehicles Fire Appliances 62 61 Lorries/Vans 36 31 Cars/Light Vans 104 119 Community Fire Safety Trailer 1 1 Educational Fire Appliance 3 1 Mobile Chef Unit 1 1 Icar 1 1 New Dimensions Assets (from DCLG) 4 4

119 26

16. PROPERTY, PLANT & EQUIPMENT (OPERATIONAL)

Operational Assets Other Plant & Land & Vehicles Total Equipment Restated Buildings £'000 £'000 £'000 £'000

Value as at 1 April 2010 50,695 7,297 1,916 59,908

During the Year Transfers - 383 383 Revaluations 1,572 - - 1,572 Additions 810 251 1,473 2,534 Disposals - (16) - (16) Impairments (1,982) - - (1,982)

51,095 7,915 3,389 62,399

Depreciation for the Year (1,220) (939) (628) (2,787)

Value as at 31 March 2011 49,875 6,976 2,761 59,612

Nature of asset holding Acquired under Finance Lease 1,789 1,789 Owned 49,875 5,187 2,761 57,823 49,875 6,976 2,761 59,612

2009/10 Comparatives

09/10 Restated Operational Assets Other Plant & Land & Vehicles Total Equipment Buildings £'000 £'000 £'000 £'000

Value as at 1 April 2009 52,315 6,676 1,386 60,377

During the Year Transfers - 111 - 111 Revaluations 265 - 265 Expenditure 717 1,569 823 3,109 Disposals - - - - Impairments (1,437) - - (1,437)

51,860 8,356 2,209 62,425

Depreciation for the Year (1,165) (1,059) (293) (2,517)

Value as at 31 March 2010 50,695 7,297 1,916 59,908

Nature of asset holding Acquired under Finance Lease 2,065 2,065 Owned 50,695 5,232 1,916 57,843 50,695 7,297 1,916 59,908

120 27

17. PROPERTY, PLANT & EQUIPMENT (NON OPERATIONAL)

Non Operational Assets Held for Assets Under Total Sale Construction Restated £'000 £'000 £'000

Value as at 1 April 2010 87 384 471

During the Year Transfers (384) (384) Revaluations - Additions 668 668 Disposals (87) - (87) Impairments - - -

- 668 668

Depreciation for the Year - -

Value as at 31 March 2011 - 668 668

Nature of asset holding

Owned - 668 668

2009/10 Comparatives

Non Operational Assets 2009/10 Restated Assets Held for Under Total Sale Construction £'000 £'000 £'000

Value as at 1 April 2009 50 529 579

During the Year Adjustments - (111) (111) Revaluations 37 - 37 Expenditure - - - Disposals - - - Impairments - - -

87 418 505

Depreciation for the Year - (34) (34)

Value as at 31 March 2010 87 384 471

Nature of asset holding Owned 87 384 471

121 28

18. VALUATION OF PROPERTY CARRIED AT CURRENT VALUE

The following statement shows the progress of the Authority’s rolling programme for the revaluation of fixed assets. The valuation of the building stock is carried out by the Property Services department of the East Riding of Yorkshire Council and has an effective date of 1st April each year. The basis for valuation of different categories of asset is set out in note 1.10 of the Statement of Accounting Policies and note 19 of Notes to the Core Financial Statements below:

2010/11

Operational Assets Non Operational Assets

Other Land Plant & Assets Under Vehicles Total & Buildings Equipment Construction £'000 £'000 £'000 £'000 £'000

Value as at Historical Cost 23,124 6,976 2,761 668 33,529

Value at Current Value in: Current Year 26,751 26,751

Value as at 31 March 2011 49,875 6,976 2,761 668 60,280

Nature of asset holding

Leased 1,789 1,789 Owned 49,875 5,187 2,761 668 58,491 49,875 6,976 2,761 668 60,280

Note: the above valuations as at 31 March 2011 are net of accumulated depreciation to that date.

2009/10

Operational Assets Non Operational Assets

Other Land Plant & Other Land Vehicles Vehicles Total & Buildings Equipment & Buildings £'000 £'000 £'000 £'000 £'000 £'000

Value as at Historical Cost 28,168 7,297 1,916 - 384 37,765

Value at Current Value in: Current Year 22,527 - 87 - 22,614

Value as at 31 March 2010 50,695 7,297 1,916 87 384 60,379

Nature of asset holding

Owned 50,695 5,232 1,916 87 384 58,314 Acquired under Finance Lease 2,065 2,065 50,695 7,297 1,916 87 384 60,379

122 29

19. MOVEMENTS IN INTANGIBLE ASSETS DURING 2010/11

Software licences are shown as Intangible Assets. These licences cover a number of systems held by the Service and their costs are written down over the life of the system they form part of, which, is not in excess of five years. Amortisation is allocated to the Fire Fighting and Operations and Community Fire Safety Service lines in the Comprehensive Income and Expenditure Statement on the same basis as other overheads (Please see accounting policy 1.11).

Movements in intangible assets during the year are detailed in the table below:

£'000 £'000 2010/11 2009/10 Value as at 1 April 358 298

During the Year Revaluations - - Additions 137 166 Disposals - - Impairments - -

Value Before Depreciation 495 464

Amortisation for the Year (119) (106)

Value as at 31 March 376 358

Nature of Asset Holding Owned 376 358

20. PROPERTY, PLANT AND EQUIPMENT VALUATION

The non current assets included in the balance sheet of the Authority have been valued on the following basis and under the arrangements described: -

Operations Land & Buildings, Non-Operational Land & Buildings

Operational Land and Building Valuation basis: Depreciated Replacement Cost Service Headquarters: Existing Use Value Non Operational Land and Building Valuation basis: Existing Use Value Date of valuation: Ongoing from 1 April 1998 Revaluation approach adopted: Five year rolling programme of revaluation of asset stock

Vehicles, Plant & Equipment

Valuation basis: Depreciated Historical Cost Date of Valuation: Initial entry on Balance Sheet in year of acquisition

Revaluation approach adopted: Individual asset values and life expectancy to be reviewed on an ongoing basis

Operational buildings, vehicles, plant and equipment are depreciated on a straight-line basis. Depreciation is not applied to non-operational buildings.

123 30

Revaluation of land and buildings held by the Authority is carried out by the Authority's Property Consultant. This role is currently undertaken by the East Riding of Yorkshire Council. Valuations are carried out by RICS/ISVA qualified staff.

21. IMPAIRMENTS OF PROPERTY, PLANT AND EQUIPMENT

The Comprehensive Income and Expenditure Statement includes £1,398k (£177k for 2009/10) relating to reduction in value of land and buildings that cannot be offset against previous revaluation increases held in the Revaluation reserve.

During 2010/11 there was a material impairment;

Peaks Lane, Grimsby was impaired by £1,015k. £476k of this impairment was offset by previous increases in the value of the asset held in the Revaluation reserve, the remaining £539k is reflected in the Comprehensive Income and Expenditure Statement.

22. ANALYSIS OF NET ASSETS EMPLOYED

Individual balances are analysed below

Property, Plant and Equipment

See notes 16 and 17 above

Inventories

The value of inventories held by the Authority may be analysed as shown: -

31 March 31 March 1 April 2011 2010 2009 £'000 £'000 £'000 Brigade Headquarters Store 319 251 262 Fuel 43 55 47 Headquarters Canteen 1 1 2 Engineering Workshop - Hull 30 29 56 Engineering Workshop - Grimsby 13 15 14 Mobile Workshops 7 8 7 Community Fire Safety Goods - - 20 413 359 408

With effect from 31 March 2011 the inventories held by the Authority have been valued on the basis of the lower of cost and net realisable value in line with IAS 2.

124 31

Debtors

 Long Term Debtors

There were no long term debtors at 31 March 2011.

 Debtors

Amounts falling due within one year may be analysed as follows: -

31 March 31 March 1 April 2011 2010 2009 £'000 £'000 £'000 Government Departments 840 1,238 3,318 Other Local Authorities 107 98 1,103 Other Entities and Individuals 3,106 2,762 1,491 4,053 4,098 5,912

Creditors

Analysis of creditors is as follows: -

31 March 31 March 1 April 2011 2010 2009 £'000 £'000 £'000 Government Departments 1,237 1,322 1,020 Other Local Authorities 406 428 288 Other Entities and Individuals 1,717 2,108 1,746 3,360 3,858 3,054

125 32

23. LONG TERM BORROWING

The outstanding borrowings of the Authority at 31 March 2011 which were repayable within a period in excess of 12 months were as follows:

Interest Amount Outstanding at Source of Loan 31 March 31 March Rate 1 April 2009 Payable 2011 2010 % £'000 £'000 £'000 Public Work Loans Board 3.70 1,000 - - Public Work Loans Board 3.75 1,000 - - Public Work Loans Board 3.88 1,000 - - Public Work Loans Board 4.40 428 428 428 Public Work Loans Board 4.45 634 634 634 Public Work Loans Board 4.48 1,200 1,200 1,200 Public Work Loans Board 4.50 118 118 118 Public Work Loans Board 4.52 500 500 500 Public Work Loans Board 4.55 4,400 4,400 2,092 Public Work Loans Board 4.625 827 827 827 Public Work Loans Board 4.70 75 Public Work Loans Board 4.75 1,232 1,232 1,232 Public Work Loans Board 4.80 612 612 612 Public Work Loans Board 4.90 1,404 1,404 2,051 Public Work Loans Board 5.00 917 1,067 1,067 Public Work Loans Board 5.15 200 200 200 Public Work Loans Board 5.25 925 925 925 Public Work Loans Board 5.30 600 600 600 Public Work Loans Board 5.35 600 600 Public Work Loans Board 5.45 300 Public Work Loans Board 5.50 217 217 217 Public Work Loans Board 5.875 400 800 800 Public Work Loans Board 6.000 234 17,614 15,764 14,712

Loans analysed by maturity are as follows:

31 March 31 March 1 April 2011 2010 2009 £'000 £'000 £'000 Maturing in 1-2 Years 1,000 1,150 609 Maturing in 2-5 Years 3,312 2,994 5,023 Maturing in 5-10 Years 3,406 4,090 4,115 Maturing in More Than 10 Years 9,896 7,530 4,965 17,614 15,764 14,712

126 33

24. PENSIONS

Participation in Pension Schemes

As part of the terms and conditions of employment of its officers and other employees, the Authority offers retirement benefits. Although these will not actually be payable until employees retire, the Authority has a commitment to make the payments which needs to be disclosed at the time that employees earn their future entitlement.

The Authority participates in three pension schemes:

The Local Government Pension Scheme for civilian employees, administered by the East Riding of Yorkshire Council. This is a funded scheme, which means that the Authority and employees pay contributions into a fund, calculated at a level estimated to balance pension liabilities with investment assets.

The Firefighters’ Pension Scheme 1992 for uniformed staff and The Firefighters’ Pension Scheme 2006, for uniformed staff, which incorporates the Firefighters’ Compensation Scheme 2006. Both the Firefighters’ Pension schemes are unfunded defined benefit schemes, which means they provide pensions and other retirement benefits for employees based upon final salaries, but own no assets. As a result, the annual cost of the benefits paid is met using employer’s and employees’ contributions with the balance of the payments being met by the Government through a Top-Up grant.

127 34

Transactions Relating to Retirement Benefits

The costs of retirement benefits are recognised in the Net Cost of Services when they are earned by employees, rather than when the benefits are eventually paid as pensions. The charge the Authority is required to make against the levies raised is based on the cash payable in the year, so the real cost of retirement benefits is reversed out of the revenue account after Net Operating Expenditure. The following transactions have been made in the Comprehensive Income and Expenditure Account during the year:

Local Government Firefighters' Pension Scheme Pension Scheme 2010/11 2009/10 2010/11 2009/10 £'000 £'000 £'000 £'000 Net Cost of Service Current Service Cost (1,001) (441) (10,290) (5,940) Unfunded Benefits 7 8 - Past Service Costs 2,466 - 48,490 -

Net Operating Expenditure Interest Cost (1,280) (935) (24,850) (21,850) Expected Return on Assets in the Scheme 993 597 -

Amounts to be Met from Levies Raised Movement on Pensions Reserve - (102) (25,486) 26,030

Employers' Contribution Payable to Scheme 1,185 (873)

Retirement Benefits Payable to Pensioners (12,136) (1,760)

In addition to the recognised gains and losses included in the Income and Expenditure Account (shown in the table above), actuarial gains and losses of £31.740m (£11.338m for 2009/10) were included in the Statement of Comprehensive Income and Expenditure.

The Estimated contributions payable to the Authority’s pension schemes for 2011/12 is £5,251,000. (£5,397,000 for 2010/11)

Actuarial gains and losses comprise: a) Experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred), and b) The effects of changes in actuarial assumptions.

Actuarial gains and losses are recognised in the Comprehensive Income and Expenditure Statement.

128 35

Assets and Liabilities in Relation to Retirement Benefits

Reconciliation of present value of the scheme liabilities:

Funded Liabilities Unfunded Liabilities Local Government Firefighters' Pension Scheme Pension Scheme 2010/11 2009/10 2010/11 2009/10 £'000 £'000 £'000 £'000 1 April (24,740) (13,363) (465,680) (319,530)

Current service cost (1,001) (441) (10,290) (5,940)

Interest cost (1,280) (935) (24,850) (21,850)

Contributions by scheme participants (306) (276) (2,430) (2,420)

CLG grant contribution towards firefighter's pension costs - - 6,196 6,359

Actuarial gains/(losses) 4,081 (10,050) 19,894 (136,019)

Estimated unfunded benefits paid 7 8 - -

Benefits paid 415 317 12,840 13,720

Past service costs/(Gains) 2,466 - 48,490 -

31 March (20,358) (24,740) (415,830) (465,680)

Reconciliation of fair value of scheme assets:

Funded Liabilities Local Government Pension Scheme 2010/11 2009/10 £'000 £'000 1 April 13,192 8,784

Expected rate of return 993 597

Actuarial gains /(losses) 1,569 2,979

Employer contributions 971 873

Contributions in respect of unfunded benefits 7 8

Contributions by scheme contributors 306 276

Unfunded benefits paid (7) (8)

Benefits paid (415) (317)

31 March 16,616 13,192

129 36

The expected return on scheme assets is determined by considering the expected returns available on the assets underlying the current investment policy. Expected yields on fixed interest investments are based on gross redemption yields as at the Balance Sheet date. Expected returns on equity investments reflect long-term real rates of return experienced in the respective markets.

Scheme History

2006/07 2007/08 2008/09 2009/10 2010/11 £'000 £'000 £'000 £'000 £'000

Present Value of Liabilities Local Government Pension Scheme (15,136) (13,351) (13,363) (24,740) (20,358)

Firefighters' Pension Scheme (363,140) (317,640) (319,530) (465,680) (415,830)

Fair Value of Assets Local Government Pension Scheme 10,207 10,694 8,784 13,192 16,616

Firefighters' Pension Scheme - - - - -

Surplus/(Deficit) in the Scheme Local Government Pension Scheme (4,929) (2,657) (4,579) (11,548) (3,742)

Firefighters' Pension Scheme (363,140) (317,640) (319,530) (465,680) (415,830)

(368,069) (320,297) (324,109) (477,228) (419,572)

The Fair value of assets in the above table have been restated as permitted by IAS 19.

The liabilities show the underlying commitments that the Authority has in the long-run to pay retirement benefits. The total net liability of £419.572m (£477.228m in 2009/10) has a substantial impact on the net worth of the Authority as recorded in the Balance Sheet, resulting in a negative overall balance of £367.108m (£427.588m in 2009/10) However, there are statutory provisions (most recently, S13 of the Local Government act 2003) for funding any Local Authority deficit. In addition, the deficit on the local government scheme will be made good by increased contributions over the remaining working life of employees as assessed by the scheme actuary.

Finance is only required to be raised to cover firefighters’ pensions when pensions are actually paid i.e. as they actually retire.

Basis for Estimating Assets and Liabilities

Liabilities have been assessed on an actuarial basis using the projected unit method (an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels, etc) by Hymans Robertson, an independent firm of actuaries for the Local Government Pensions Scheme and by the Government Actuaries Department (GAD) in relation to the Firefighters’ Pension Schemes (all figures in relation to Firefighters’ Pensions schemes included in the following and earlier statements are the net of all schemes mentioned in note 23. Estimates for the Local Government Pension Scheme administered by the East Riding of Yorkshire Council have been based on the latest full valuation of the scheme as at 31 March 2011.

130 37

The principal assumptions used by the actuaries have been:

Local Government Firefighters' Pension Scheme Pension Scheme 2010/11 2009/10 2010/11 2009/10

Long-term expected rate of return on assets in the scheme :

Equity Investments 7.5% 7.8% - - Bonds 4.9% 5.0% - - Property 5.5% 5.8% - - Other 4.6% 4.8% - -

Longevity at 65 for current pensioners:

Men 22.9 22.7 23.4 23.3 Women 25.7 26.1 25.3 25.2

Longevity at 65 for future pensioners: (45 for Firefighters Pension Scheme) Men 24.9 24.8 26.3 26.2 Women 27.7 28.3 28.0 28.0

Rate of Inflation 2.8% 3.8% 3.1% 3.9% Rate of increase in salaries 5.1% 5.3% 5.3% 5.4% Rate of increase in pensions 2.8% 3.8% 3.1% 3.9% Rate for discounting scheme liabilities 5.5% 5.5% 5.7% 5.8% Take-up of option to convert annual pension into retirement lump sum 30.0% 30.0% N/a N/a

Mortality rates are projected to 2008 using the standard '92-series' mortality improvements and rated down one year. Future mortality improvements from 2008 are in line with the 2008-based UK national population projections.

Firefighters’ Pension Schemes have no assets to cover their liabilities. Assets in the Local Government Pension Scheme administered by the East Riding of Yorkshire Council are now valued at bid value rather than mid market value and consist of the following categories, by proportion of the total assets held by the Fund:

31 March 2010/11 2009/10

£'000 £'000

Equity Investments 12,960 10,685

Bonds 1,662 1,319

Property 831 529

Cash 1,163 660

16,616 13,193

131 38

The actuarial gains identified as movements on the Pensions Reserve in 2010/11 can be analysed into the following categories, measured as a percentage of assets or liabilities at the 31 March 2011:

2006/07 2007/08 2008/09 2009/10 2010/11 %%%%%

Local Government Pension Scheme Difference between the expected and actual return on assets 0.57 (6.67) (26.54) 22.58 9.44

Experience gains and losses on liabilities 0.82 (0.40) (6.32) 40.62 (20.05)

Firefighters' Pension Scheme 1992 Experience gains and losses on liabilities (5.07) (23.93) (14.11) 28.82 (22.80)

Firefighters' Pension Scheme 2006 Experience gains and losses on liabilities 0.45 (32.27) 19.32 46.05 (8.70)

The Code of Practice on Local Authority Accounting in the United Kingdom 2000 requires the disclosure of the capital cost of any discretionary pensions payments agreed by the Authority in respect of the Local Government Pension Scheme. There were no such payments made during the financial year 2010/11. Discretionary payments were made to Fire staff by the former Humberside County Council before the 1 April 1996 and are recharged to the Authority by the East Riding of Yorkshire Council. The cost to the Authority of these payments in 2010/11 was £7,701 (£7,701 during 2009/10). The capital cost of these payments is estimated at £73,421. (£138,507 for 2009/10) No discretionary costs are funded by the pension scheme itself.

25. NOTES RELATING TO THE CASH FLOW STATEMENT

Movements in Cash and Cash Equivalents

Restated 31 March 31 March Movement 2011 2010 £'000 £'000 £'000 Bank In Hand/(Overdrawn) 764 716 (48) 764 716 (48)

Restated Restated 31 March 1 April Movement 2010 2009 £'000 £'000 £'000 Bank In Hand/(Overdrawn) 716 270 (446) 716 270 (446)

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Movements in Other Current Assets

31 March 31 March Movement 2011 2010 £'000 £'000 £'000

Debtors 4,053 4,098 (45) Collection Fund Adjustment Account (312) (360) 48 Creditors (3,360) (3,858) 498 Inventories 413 359 54

794 239 555

Movement in Long Term Borrowing

Restated 31 March 31 March Movement 2011 2010 £'000 £'000 £'000 P.W.L.B. Loans (17,614) (16,690) (924) Finance Leases (2,196) (2,618) 422 (19,810) (19,308) (502)

Cash Flow Statement – Operating Activities

The cash flows for operating activities include the following items: Restated 2010/11 2009/10 £'000 £'000 Interest Received (53) (51) Interest Paid 882 719 Dividends received - -

Cash Flow Statement – Investing Activities

Restated 2010/11 2009/10 £000 £000 Purchase of property, plant and equipment, investment property and intangible assets 3,340 3,276 Purchase of short-term and long-term investments 3,000 4,300 Other payments for investing activities

Proceeds from the sale of property, plant and equipment, investment property and intangible assets (89) (13) Proceeds from short-term and long-term investments Other receipts from investing activities (917) (740) Net cash flows from investing activities 5,334 6,823

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Cash Flow Statement – Financing Activities

Restated 2010/11 2009/10 £000 £000 Cash receipts of short and long-term borrowing (3,000) (3,000) Other receipts from financing activities Cash payments for the reduction of outstanding liabilities relating to finance leases and on balance sheet PFI contracts Repayments of short and long-term borrowing 926 1,022 Repayments relating to Finance Leases 422 406 Other payments relating to financing activities Other receipts from investing activities Net cash flows from financing activities (1,652) (1,572)

Government Grants

An analysis of Other Government Grants received during 2010/11 is given in note 7 of the notes to the Core Financial Statements.

26. USEABLE RESERVES

The Authority retains a number of Reserves which are available to fund Expenditure.

General Fund Balance - This is retained to fund unforeseen expenditure pressures.

Earmarked Reserves - These reserves are retained to fund particular items of expenditure and are reviewed each year, currently the Earmarked Reserves balance is £4,470k (£2,150k at the end of 2009/10).

Capital Receipts reserve. This can be used to fund items of Capital Expenditure.

27. UNUSEABLE RESERVES

The Authority now retains four unuseable reserves:-

Capital Adjustment Account - This Reserve is required by the 2009 SoRP and is used to allow the Authority to nullify the effect of non current asset expenses on the Accounts.

Revaluation Reserve - This Reserve is required by the 2009 SoRP and reflects the amount to which the value of the property owned by the Authority has increased. A transfer can be made from the Revaluation Reserve to the Capital Adjustment Account to reflect the amount of additional depreciation that has been charged due to the increase in value of the property, should the value of a previously revalued property fall some or all of the loss can be offset against the amount remaining in the Revaluation Reserve.

Pensions Reserve - Please see Note 22 Pensions.

Collection Fund - This Reserve is required by the 2009 SoRP for Adjustment Account billing and precepting Authorities regarding the collection and distribution of council tax receipts

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28. MOVEMENT ON EARMARKED REVENUE RESERVES

Water Personal Property Rescue Protective Peaks Lane Change Total Control Maintenance Insurance Equipment Equipment RDS Equal Refurbishment FRSS Management Earmarked Movements in Earmarked Reserves Reserve Reserve Reserve Reserve Reserve Pay Reserve Reserve Reserve Reserve Reserves £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 March 2010 300 500 400 200 750 2,150

Surplus or (Deficit) on Provision of Services (accounting basis)

Other Comprehensive Expenditure and Income

Total Comprehensive Income & Expenditure ------

Adjustments between Accounting Basis &

135 Funding Basis under Regulations

Net Increase / Decrease before Transfers to Earmarked Reserves ------

Transfers to / from Earmarked Reserves (750) 350 100 120 2,500 2,320 r - - - - (750) 350 100 120 2,500 2,320 Increase / Decrease in Yea Balance at 31 March 2011 300 500 400 200 - 350 100 120 2,500 4,470

42

2009/10

Earmarked Water Personal Revenue Property Rescue Protective Total Movements in Reserve Control Maintenance Insurance Equipment Equipment Earmarked Earmarked Reserves (Utilities) Reserve Reserve Reserve Reserve Reserve Reserves £'000 £'000 £'000 £'000 £'000 £'000 £'000 2009 358 300 500 400 0 0 1,558

Surplus or (Deficit) on Provision of Services (accounting basis) -

Other Comprehensive Expenditure and Income 0 Total Comprehensive Income & Expenditure - - - -

Adjustments between Accounting Basis & Funding Basis under Regulations 0

Net Increase / Decrease before Transfers to Earmarked Reserves - - - -

Transfers to / from Earmarked Reserves (358) 200 750 592

Increase / Decrease in Year (358) - - - 200 750 592

Balance at 31 March 2010 - 300 500 400 200 750 2,150

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29. MOVEMENT ON CAPITAL RESERVES

Movement on Capital Reserves

Revaluation Reserve

Restated 2011 2010 £'000 £'000 Acquisitions and enhancements - -

Gains/Losses on Revaluation of Non Current Assets Assets - Gains (1,573) (303)

Gains/Losses on Revaluation of Non Current Assets - Losses 584 1,259

Disposal of Assets with Revaluation Reserve Balances 38

Depreciation and Impairments 26 259

Total Movement on Reserve (925) 1,215

Balance Brought Forward 1 April (9,898) (11,113)

Balance Carried Forward at 31 March (10,823) (9,898)

Capital Adjustment Account

Restated 2011 2010 £'000 £'000 Disposal of Assets 66 13

Depreciation 2,905 2,614

Impairments 1,398 177

Compensatory adjustment from the Revaluation Reserve to convert current value depreciation debits to historical cost. (30) (259)

Deferred Grants and Contributions applied (1,215) (796)

Provision for Repayments of External Loans (MRP) (1,384) (1,078)

Adjustment for New Dimensions Assets 44

Total Movement on Reserve 1,740 715

Balance Brought Forward 1 April Restated (32,563) (33,278)

Balance Carried Forward at 31 March (30,823) (32,563)

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Usable Capital receipts Reserve

2011 2010 £'000 £'000 Amounts Receivable (88) (13)

Amounts Applied in - -

Total Increse/(Decrease) in Realisable Capital resources (88) (13)

Balance Brought Forward 1 April (330) (317)

Balance Carried Forward at 31 March (418) (330)

30. CAPITAL FROM REVENUE RESERVES

The Local Government and Housing Act 1989 allows an Authority to finance an unlimited amount of capital expenditure through its revenue Accounts. Any capital expenditure incurred which is not financed by way of borrowing, capital receipts or capital grant must be charged to the revenue account and the financing shown as a contribution from reserves. Expenditure financed in this way by the Authority during 2010/11 was nil.

31. PROVISION FOR THE REPAYMENT OF EXTERNAL LOANS

The Authority is required by statute to set aside a Minimum Revenue Provision (MRP) for the redemption of external debt. The method of calculating the provision is defined by statute. The minimum revenue provision for 2010/11 is as follows:

Restated 2010/11 2009/10 £'000 £'000

MRP based on Option 1 - 4% of CFR/Supported Borrowing 521 502

MRP based on Option 3(a) - Equal Instalments of Self Financed Borrowing 441 170

MRP for Assets acquired under Finance Leases 422 406 Matched to the Principal repaid

1,384 1,078

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32. CONTINGENT LIABILITIES

Pe n sion Entitlements for part time workers

In January 2008 an Employment Tribunal issued a unanimous judgment to the effect that part time workers, including retained duty firefighters, were engaged in broadly similar work to their comparators and that they were treated less favourably than their named comparators in respect of access to pension rights and payment for sickness absence. As at the time of writing a data collection exercise has been completed but to date no settlement has been agreed. The potential liability faced by the Authority cannot be reliably measured at this time. In addition to the settlement of the legal case there may be additional payments to existing employees due to amendments to working conditions, at this time the additional costs cannot be quantified. (Please see note 33).

Fire Fighters’ Pension – Age Discrimination

Communities & Local Government (CLG) have determined that there has been age discrimination against members of the Firefighters’ Pension Scheme 1992 who joined the scheme before the age of 20 in that these members would contribute to the scheme for a period in excess of 30 years but only accrue the same pension rights as members who contribute to the scheme for a period no greater than 30 years. There is a potential liability to the Authority but it is not quantifiable at this moment in time.

33. PROVISION FOR CREDIT LIABILITIES (PCL)

Under s.63 of the Local Government and Housing Act (1989) authorities are required to set aside each year an amount in respect of provision for credit liabilities (i.e. the repayment of debt). The 1993 Code of Practice on Local Authority Accounting in Great Britain further requires that the provision for credit liabilities be shown as a memorandum account in the notes to the balance sheet of an Authority. The PCL for the Authority at 31 March 2011 is duly set out below:

Restated 2011 2010 £'000 £'000 £'000 £'000

Balance Brought Forward 1 April 3,234 2,562

Add - Amounts Set Aside From: Capital Receipts - - Minimum Revenue Provision 1,384 1,078 1,384 1,078

Less - Loans Repaid (1,348) (406)

Balance Carried Forward 31 March 3,270 3,234

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34. EVENTS AFTER THE BALANCE SHEET DATE

Part time Workers (Prevention of Less Favourable Treatment) Regulations – Settlement Agreements. The agreement with the Fire Brigades Union and the Retained Firefighters Union was reached during 2010/11, further information has been received on 19th April 2011 stating that the data collection exercise carried out in 2010/11 may not have been carried out correctly by all authorities. If this is the case all authorities will be in breach of the agreement made. To date no further information has been received. This will not have a material effect on the Accounts and £350,000 has been included in earmarked reserves to cover these potential costs.

On 8th June 2011 Epworth fire station and fire engine incurred significant damage from a fire. At the time of writing the Authority are in discussions with the insurance provider.

On 3rd August Goole fire station was flooding following heavy rain and suffered damage from flooding. At the time of writing the Authority are in discussions with the insurance provider.

35. FINANCIAL INSTRUMENTS

This Financial Instruments held by the Authority are included below and the Authority fully complies with the CIPFA Code of Practice on Local Authority Accounting.

Amortised Cost

This change in accounting standards has meant that most financial instruments (whether borrowing or investment) have, in 2010/11, to be valued on an amortised costs basis using the effective interest rate (EIR) method.

Fair Value

In these disclosure notes, financial instruments are also required to be shown at fair value. Fair value is defined as the amount for which an asset could be exchanged or a liability settled, assuming that the transaction was negotiated between parties knowledgeable about the market in which they are dealing and willing to buy/sell at an appropriate price, with no other motive in their negotiations other than to secure a fair price.

Compliance

This Authority has complied with the following: -

It has adopted the CIPFA Treasury Management in the Public Services: Code of Practice.

Set treasury management indicators to control key financial instrument risks in accordance with CIPFA’s Prudential Code.

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Accounting regulations require the financial instruments (investment, lending and borrowing of the Authority) shown on the balance sheet to be further analysed into various defined categories. The investments, lending & borrowing disclosed in the balance sheet are made up of the following categories of “financial instruments”. Long Term Current 31 March 31 March Restated Restated 2011 2010 2011 2010 £'000 £'000 £'000 £'000

Financial liabilities at amortised cost (19,450) (17,848) (4,870) (5,318)

Financial liabilities at fair value through profit and loss - - - -

Total borrowings (19,450) (17,848) (4,870) (5,318)

Loans and receivables - - 15,817 12,814

Available for sale financial assets - - - -

Unquoted equity investment at cost - - - -

Total investments - - 15,817 12,814

Analysis of the Financial Liabilities and Loans and Receivables is shown in the table below: 31 March 2011 2010 Restated £'000 £'000 Financial Liabilities Current Creditors (3,360) (3,858) Bank overdrawn - - PWLB Loans and Finance Lease payments due within 12 months (1,510) (1,460) (4,870) (5,318)

Long Term PWLB Loans (17,614) (15,764) Finance Leases (1,836) (2,084) (24,320) (23,166)

Loans and Receivables Current Debtors 4,053 4,098 Investments 11,000 8,000 Cash at Bank 764 716 15,817 12,814

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Gains and losses recognised in the Comprehensive Income and Expenditure Account for 2010/11 in relation to financial instruments are made up as follows:

2010/11 Financial Total Liabilities Financial Assets Measured Loans and Available at amortised Receivables for sale cost Assets £'000 £'000 £'000 £'000

Interest Expense (983) - - (983)

Loss on derecognition - - - -

Impairment losses - - - -

Interest payable and similar charges (983) - - (983)

Interest income - 81 - 81 - Losses on revaluation - - - - Amounts recycled to the Income and Expenditure Account after impairment - - - -

Interest and investment income - 81 - 81

Gains on revaluation - -

Losses on revaluation - -

Amounts recycled to the Income and Expenditure Account after impairment - -

Surplus arising on revaluation of financial assets - -

Net gain/(loss) for the year (983) 81 - (902) test

See also notes 1.22 and 1.23 of the Statement of Accounting Policies

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Comparable figures for 2009/10 are shown in the table below:

2009/10 Financial Total Liabilities Financial Assets Measured Loans and Available at amortised Receivables for sale cost Assets £'000 £'000 £'000 £'000

Interest Expense (750) - - (750)

Loss on derecognition - - - -

Impairment losses - - - -

Interest payable and similar charges (750) - - (750)

Interest income - 52 - 52 - Losses on revaluation - - - - Amounts recycled to the Income and Expenditure Account after impairment - - - -

Interest and investment income - 52 - 52

Gains on revaluation - -

Losses on revaluation - -

Amounts recycled to the Income and Expenditure Account after impairment - -

Surplus arising on revaluation of financial assets - -

Net gain/(loss) for the year (750) 52 - (698)

The fair value of each class of financial assets and liabilities which are carried in the balance sheet at amortised cost is disclosed below.

The Fire Authority engaged Sector, a firm of financial consultants specialising in treasury management and capital finance in the U.K. Public Sector, who have calculated the Fair Value of the financial instruments stated above. Sector’s methodology and assumptions have been adopted and are stated below.

Methods and Assumptions in valuation technique

The fair value of an instrument is determined by calculating the Net Present Value (NPV) of future cash flows, which provides an estimate of the value of payments in the future in today's terms.

The discount rate used in the NPV calculation is the rate applicable in the market on the date of valuation for an instrument with the same structure, terms and remaining duration. For debt, this will be the new borrowing rate since premature repayment rates include a margin which represents the lender's profit as a result of rescheduling the loan; this is not included in the fair value calculation since any motivation other than securing a fair price should be ignored.

The rates quoted in this valuation were obtained by our treasury management consultants from the market on 31 March 2011, using bid prices where applicable.

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The calculations are made with the following assumptions:

For PWLB debt, the discount rate used is the rate for new borrowing as per rate sheet number 126/11. For other market debt and investments the discount rate used is the rate available for an instrument with the same terms from a comparable lender. Interpolation techniques have been used between available rates where the exact maturity period was not available. No early repayment or impairment is recognised. Fair values have been calculated for all instruments in the portfolio, but only those which are materially different from the carrying value have been disclosed. The fair value of trade and other receivables is taken to be the invoiced or billed amount.

The fair values are calculated as follows:

31 March 2011 31 March 2010 Restated Restated Carrying Fair Carrying Fair Amount Value Amount Value £'000 £'000 £'000 £'000

Financial Liabilities (20,960) (20,575) (23,166) (24,155)

Loans and Receivables 15,612 15,636 12,814 12,820

The decrease in the fair value of Financial Liabilities over the carrying amount is because the interest rate payable on the Authority’s portfolio of fixed rate loans is lower than the rates for similar loans as at the Balance Sheet date. The increase in the fair value of the Loans and Receivables over the carrying amount is due to the interest rate receivable on the Authority’s portfolio of fixed rate investments is greater than the rates for similar loans as at the Balance Sheet date. This guarantee to receive interest above the current market rate increases the amount that the Authority would receive if it agreed to early repayment of the loans.

The Authority’s management of treasury risks actively works to minimise the exposure to the unpredictability of financial markets and to protect the financial resources available to fund services. The Authority has fully adopted CIPFA’s Code of Treasury Management Practices and has written principles for overall risk management as well as written polices and procedures covering specific areas such as credit risk, liquidity risk and market risk.

Credit risk

Credit risk a rises from the short-term lending of surplus funds to banks, building societies and other local authorities as well as credit exposures to the Authority’s customers. It is the policy of the Authority to place deposits only with a limited number of high quality banks and building societies whose credit rating is independently assessed as sufficiently secure by the Authority’s treasury advisers and to restrict lending to a prudent maximum amount for each institution. In order to mitigate against risk and in the light of market conditions, the Director of Finance/Section 151 Officer considered that the most prudent approach was to restrict investments to UK based, and other ‘AAA’ rated European institutions with a maximum limit of £2m.

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The following analysis summarises the Authority’s potential maximum exposure to credit risk, based on past experience and current market conditions. No credit limits were exceeded during the financial year and the Authority expects full repayment on the due date of deposits placed with its counterparties.

31 March Historical Historical Estimated 2011 experience experience maximum of default adjusted for exposure to market default and conditions at uncollectability 31 March 2011 £'000 % % £'000

Deposits with banks and financial institutions 11,764 0.00 0.00 -

Bonds - 0.00 0.00 -

Customers 3,848 0.43 0.43 17

15,612 17

No credit limits were exceeded during the reporting period and the Authority does not expect any losses from non-performance by any of its counterparties in relation to deposits and bonds.

Debtors

The Authority does not generally allow credit for customers, such that only £20k of the £3,848k balance is past its due date for payment. The past due amount can be analysed by age as follows:

31 March 31 March 2011 2010 £'000 £'000

Less than three months 1 1 Three to six months 19 - Six months to one year - - More than one year - 2

20 3

Liquidity Risk

The Authority has access to a facility to borrow from the Public Works Loans Board. As a result there is no significant risk that the Authority will be unable to raise finance to meet its commitments under financial instruments. The Authority has safeguards in place to ensure that a significant proportion of its borrowing does not mature for repayment at any one time in the future to reduce the financial impact of re-borrowing at a time of unfavourable interest rates. The Authority’s policy is to ensure that not more than 10% of loans are due to mature within any financial year and 25% within any rolling five-year period through a combination of prudent planning of new loans taken out and, where it is economic to do so, making early repayments.

See note 22 of the notes to the Core Financial Statements for an analysis of the maturity of long term loans with the Public Work Loans Board.

All trade and other payables are due to be paid in less than one year.

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Market Risk

Interest Rate Risk

The Authority is exposed to interest rate risk in two different ways; the first being the uncertainty of interest paid/received on variable rate instruments, and the second being the effect of fluctuations in interest rates on the fair value of an instrument.

The current interest rate risk for the Authority is summarised below:

The fair value of fixed rate financial assets will fall if interest rates rise. This will not impact on the Balance Sheet for the majority of assets held at amortised cost, but will impact on the disclosure note for fair value. It would have a negative effect on the Balance Sheet for those assets held at fair value in the Balance Sheet, which would also be reflected in the Comprehensive Income and Expenditure Statement.

The fair value of fixed rate financial liabilities will rise if interest rates fall. This will not impact on the Balance Sheet for the majority of liabilities held at amortised cost, but will impact on the disclosure note for fair value.

The Authority has a number of strategies for managing interest rate risk. Policy is to aim to keep a maximum of 25% of its borrowings in variable rate loans. During periods of falling interest rates, and where economic circumstances make it favourable, fixed rate loans will be repaid early to limit exposure to losses. The risk of loss is ameliorated by the fact that a proportion of government grant payable on financing costs will normally move with prevailing interest rates or the Authority’s cost of borrowing and provide compensation for a proportion of any higher costs.

The treasury management team has an active strategy for assessing interest rate exposure that feeds into the setting of the annual budget and which is used to update the budget quarterly during the year. This allows any adverse changes to be accommodated. The analysis will also advise whether new borrowing taken out is fixed or variable.

According to this investment strategy, at 31 March 2011, if interest rates had been 1% higher with all other variables held constant, the financial effect would be:

2011 2010 £'000 £'000

Decrease in fair value of fixed rate investment assets 15 7

Decrease in fair value of fixed rate borrowing liabilities 188 1,194

Price Risk

The Authority does not invest in equity shares and does not have shareholdings in any joint ventures and therefore is not at significant risk to price movements.

Foreign Exchange Risk

The Authority has no financial assets or liabilities denominated in foreign currencies and thus has no exposure to loss arising from movements in exchange rates.

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36. TRANSITION TO IFRS

The introduction of the CIPFA Code of Practice on Local Authority Accounting for 2010 has resulted in amendments to the Financial Statements due to compliance with International Financial Reporting Standards.

There are two amendments to the Balance Sheet:

Leases previously classified as operating leases have been reclassified as finance leases. This has resulted in an increase of £2,064k in Vehicles and the addition of Other Borrowing – Leases of £2,618k (These entries net to the £554k adjustment disclosed below). Due to this reclassification additional depreciation of £406k has been charged to the Comprehensive Income and Expenditure statement for 2009/10, and £391k has been charged as a repayment of the finance lease payable.

Grants/Contributions deferred have been written out of the Balance Sheet to the Capital Adjustment Account. The value of this adjustment is £775k.

Injury award liabilities have been added to the liabilities of the Authority to ensure compliance with IAS19. £30,360k for 2009/10 has been added to the Pension Liability and Reserve. (£19,540k for 2008/9).

The above transactions do not have an impact in the amount required from Council Taxpayers. The reconciliation from SORP compliant Net assets to IFRS compliant net assts is shown below).

31-Mar-10 01-Apr-09 £'000 £'000 Ne t Asse ts pre viously disclose d unde r the SORP (397,449) (254,406) Transition adjustment for Leases (554) (416) Transition adjustment for Governmant Grants deferred 775 13 Transition Adjustment for Fire Fighter pension injury awards (30,360) (19,540) Net Assets restated under IFRS (427,588) (274,349)

37. PRIOR PERIOD ADJUSTMENT

New Dimensions Assets with a value of £993k at 1st April 2009 have been transferred from the Department of Communities and Local Government. These assets have been located on Humberside Fire and Rescue Service Property since 2006.

31-Mar-10 01-Apr-09 £'000 £'000 Net Assets restated under IFRS (from note 36) (427,588) (274,349) Transfer of New Dimensions assets from DCLG 1,103 993 Net Assets restated following Prior Period Adjustment (426,485) (273,356)

38. MATERIAL ITEMS OF INCOME AND EXPENDITURE

In the June 2010 Budget the Chancellor of the Exchequer announced that The Consumer Price Index would be used instead of the Retail Price index to increase Local Government and FireFighter pensions, this change has resulted in a reduction in the overall liability of the pension schemes. This amount is shown in the Comprehensive Income and Expenditure Statement as non distributed cost (£48.490m for the Firefighters’ pension scheme and £2.466m for the Local Government Pension Scheme). This change has no effect on the General Fund Account.

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FIRE FIGHTERS’ PENSION FUND ACCOUNT

The following table analyses movements on the Fund for the year 2010/11:

2009/10 2010/11 £'000s £'000s

Contributions receivable: (4,494) Employers contributions receivable (4,372) (237) Other (74) (2,413) Firefighters' contributions (2,354) (7,144) (6,800)

(285) Transfers in from other authorities (83)

Benefits payable: 10,267 Pensions 10,516 2,965 Commutations & lump sum retirement benefits 1,892 13,232 12,408

Payments to and on account leavers 577 transfers out to other authorities 0

6,380 Net amount payable for the year 5,525

(6,380) Top-up grant receivable to the firefighters pension fund (5,525) 0 Fund Account balance 0

Net Assets Statement 1st April 09 2009/10 2010/11 Current Assets 3,120 1,015 Top-up grant debtor 654 Current Liabilities (3,120) (1,015) amount owed to the Fire Authority (654)

00 0

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NOTES TO THE FIREFIGHTERS’ PENSION FUND

The funding arrangements for the firefighters’ pension scheme changed on 1 April 2006. The fund was established under the Firefighters Pension Fund Regulations 2006 (SI 1810/2006).

The fund is administered by Humberside Fire and Rescue Authority.

The fund is managed by the Director of Finance/s.151 Officer.

The benefits payable from the fund are pensions, lump sum commutation payments and ill health pensions, injury awards are payable from authorities general fund Accounts.

The Pension Fund which is unfunded scheme, consequently:

 The fund has no investment assets  Benefits payable are funded by contributions from employers and employees;and  Any difference between benefits payable and contributions receivable is met by top-up grant from the Department of Communities and Local Government (DCLG)

The pension fund is statutorily prevented from including interest on cashflows and administration expenses in the pension fund. These expenses are borne by the authorities general fund Accounts.

Employees and employers contribution levels are based on percentages of pensionable pay set nationally by the DCLG and are subject to triennial revaluation by the Governments Actuary’s Department.

STATEMENT OF ACCOUNTING POLICIES

Transactions are recorded in the pension fund Accounts on an accruals basis. Transfer values are an exception to this policy and are on a cash basis.

The following items are estimated and are material to the Pension Fund account:

 Estimation of top-up grant receivable

The Pension Fund account does not take account of the obligations to pay pensions and benefits that fall due after the end of the financial year. Please see note 24 in the main financial statements.

There are no material differences to the Pension Fund account following restating the Accounts on an IFRS basis.

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GLOSSARY OF ACCOUNTING TERMS

Accruals The concept that revenue and capital income and expenditure transactions are included in the Accounts as they are earned or incurred, not as monies are received or paid.

Asset Something that is used by an organisation in the course of its business which has a value to that organisation measurable in monetary terms. Assets may be Fixed, Current Assets or Intangible. Fixed Assets generally last for a period longer than one year; Current Assets generally are consumed in the year of account; Intangible Assets cannot be physically touched. Examples are land and buildings; stocks; and software licences respectively.

Capital Expenditure Spending on the acquisition or improvement of assets which has a long term value to the Authority.

Capital Financing Monies raised to pay for capital spending. Usually the cost of fixed assets is met by borrowing but capital expenditure may also be financed from other sources - e.g. usable capital receipts, direct revenue financing and leasing.

Capital Financing Charges The annual charges arising from capital financing of capital expenditure. These include items such as loan interest and repayment, leasing charges and contributions from revenue. See also Minimum Revenue Provision (MRP).

Capital Receipts The proceeds from the sale of fixed assets, which can be used for the financing of capital expenditure or the voluntary discharge of credit liabilities.

Consistency The concept that the accounting treatment of like items, within an accounting period and from one period to the next, will be done in the same way.

Creditor An amount owed for work done, goods received or services rendered during an accounting period, but for which payment has not been made by the end of that period.

Credit Ceiling A measure of the difference between an Authority's total liabilities in respect of capital expenditure financed by credit and the provision that has been made to meet those liabilities.

Debtor An amount due for work done, goods provided or services rendered during an accounting period, but for which payment has not been received by the end of that period.

Depreciation The measurement of the cost or revalued amount of the benefits of a fixed asset that have been consumed. Consumption includes the wearing out, or other reduction in the useful life of a fixed asset.

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Financial Instrument A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another.

Finance Lease A lease that transfers most or all the risks and rewards of ownership of a fixed asset to the lessee.

International Financial Reporting International financial reporting standards with which Standards (IFRS) the Accounts comply. See the section on Accounting Policies above.

Going Concern The concept that an organisation will remain in operational existence for the foreseeable future; in particular, that the revenue account and balance sheet assume no intention to curtail significantly the scale or nature of activity.

Impairment A reduction in the recoverable amount of a fixed asset below its carrying amount where that reduction is clearly due to the consumption of economic benefits.

Investments A sum invested on a long-term or continuing basis to support the activities of an organisation, or where the disposal of the investment is restricted in some way. Monies invested which do not meet these criteria are classified as current assets.

Liability An amount which has not yet been paid by an individual or organisation which will have to be paid at some point in the future.

Minimum Revenue Provision (MRP) MRP is a statutory amount calculated based on the level of a local Authority’s loans outstanding. See note 19 (i)(b)(ii) of the Notes to the Core Financial Statements.

Net Book Value The amount at which fixed assets are included in the balance sheet, for example historical cost or current value, less the cumulative amounts provided for depreciation.

Net Current Replacement Cost The estimated cost of replacing or recreating a particular asset in its existing condition and in its existing use, i.e. the cost of its direct replacement.

Net Realisable Value The open market value of an asset less the expenses to be incurred in realising the asset.

151 58

CERTIFICATIONS

We, the undersigned, certify that:-

The Statement of Accounts represents a true and fair view of the financial position of the Humberside Fire Authority as at 31 March 2011 and the Comprehensive Income and Expenditure for the year ended 31 March 2011.

......

R. Hannigan – Chief Fire Officer & Chief Executive

......

Councillor John Briggs – Chair

......

K. Wilson – Director of Finance/S.151 Officer

27th September 2011 (authorised for issue date)

152 59

Humberside Fire Authority

STATEMENT OF ACCOUNTS 2010/11 FEEDBACK FORM

The Statement of Accounts evolves each year and not withstanding a large amount of information being prescribed by the Accounting Codes of Practice, the Authority attempts to make the document as readable and user friendly as possible.

We would therefore welcome any comments from readers on the Statement of Accounts regarding improvements to the layout and readability for future years. If you could complete the following questionnaire and return it to the address below we will try to accommodate any comments received. Alternatively, if you are viewing this document on the internet, there is an on-line form which you can submit.

We will attempt to incorporate any comments received by 31 March 2012 into the 2011/12 Statement of Accounts where possible and the Authority will try to include any comments received after that date into future year’s documents.

1. Please indicate in what capacity you are viewing this Statement.

Local Tax Payer Local Business

Other, please specify ………………………………………………………….

2. Is the format and the layout of the Accounts easy to understand and follow?

Yes No

If not why not?

3. Did you find the information you were looking for?

Yes No

If no, why?

4. Any other comments you have would be welcome:

Please return to: Humberside Fire Authority FREEPOST NEA3610 Hull HU4 7BR

153 60

154 Appendix 2

DRAFT

Fire & Rescue Service Headquarters Summergroves Way Kingston upon Hull HU4 7BB Telephone 01482 565333 Facsimile 01482 567477 Director of Finance/S.151 Officer Kevin Wilson CPFA

Mark Kirkham Your Ref: District Auditor Our Ref: KW/SJ Audit Commission Enquiries to: Kevin Wilson 3 Leeds City Office Park Tel. Direct: (01482) 567183 Holbeck E-Mail: [email protected] Leeds Date: 27 September 2011 West Yorkshire LS11 5BD

Dear Mr Kirkham

HUMBERSIDE FIRE AUTHORITY - AUDIT FOR THE YEAR ENDED 31 MARCH 2011

I confirm to the best of my knowledge and belief, having made appropriate enquiries of other officers and members of Humberside Fire Authority, the following representations given to you in connection with your audit of the Authority’s financial statements for the year ended 31 March 2011. All representations cover the Authority’s accounts and Pension Fund accounts included within the financial statements.

Compliance with the statutory authorities

I have fulfilled my responsibility under the relevant statutory authorities for preparing the financial statements in accordance with the Code of Practice for Local Authority Accounting in the United Kingdom and International Financial Reporting Standards which give a true and fair view of the financial position and financial performance of the Fire Authority, for the completeness of the information provided to you, and for making accurate representations to you.

Supporting records

All relevant information and access to persons within the entity has been made available to you for the purpose of your audit, and all the transactions undertaken by the Fire Authority have been properly reflected and recorded in the financial statements.

Irregularities

I acknowledge my responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud or error.

I also confirm that I have disclosed:

 my knowledge of fraud, or suspected fraud, involving either management, employees who have significant roles in internal control or others where fraud could have a material effect on the financial statements;

155  my knowledge of any allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, analysts, regulators or others; and

 the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.

Law, regulations, contractual arrangements and codes of practice

I have disclosed to you all known instances of non-compliance, or suspected non-compliance with laws, regulations and codes of practice, whose effects should be considered when preparing financial statements.

Transactions and events have been carried out in accordance with law, regulation or other authority. The Fire Authority has complied with all aspects of contractual arrangements that could have a material effect on the financial statements in the event of non-compliance.

All known actual or possible litigation and claims, whose effects should be considered when preparing the financial statements, have been disclosed to the auditor and accounted for and disclosed in accordance with the applicable financial reporting framework.

Accounting estimates including fair values

I confirm the reasonableness of the significant assumptions used in making the accounting estimates, including those measured at fair value.

Related party transactions

I confirm that I have disclosed the identity of Humberside Fire Authority related parties and all the related party relationships and transactions of which I am aware. I have appropriately accounted for and disclosed such relationships and transactions in accordance with the requirement of the framework.

Subsequent events

All events subsequent to the date of the financial statements, which would require additional adjustment or disclosure in the financial statements, have been adjusted or disclosed.

Signed on behalf of Humberside Fire Authority

I confirm that this letter has been discussed and agreed by the Authority on 27 September 2011.

Signed: …………………………………………

Name: Kevin Wilson

Position: Director of Finance/S.151 Officer

Date: 27 September 2011

156 Agenda Item No. 11

Humberside Fire Authority Report by the Director of Finance/ 27 September 2011 S.151 Officer

FINANCIAL OUTLOOK FOR HUMBERSIDE FIRE AUTHORITY 2012/13 ONWARDS

SUMMARY

1. This report takes a comprehensive look at the Authority’s financial prospects for the years 2012/13 to 2014/15. The report also includes the annual review of the Prudent Minimum General Reserve (PMGR).

RECOMMENDATIONS

2. (a) That Members note the report and understand the potential financial challenges over the period to 2014/15.

(b) That the Prudent Minimum General Reserve (PMGR) be set at £5.5m in line with the Risk Assessment in Appendix 2.

CURRENT FINANCIAL POSITION 2010/11 AND 2011/12

3. The Authority’s outturn for 2010/11 delivered an underspend and closing level of total Revenue Reserves of circa £10m at 31 March 2011.

4. The Authority has set a balanced budget for 2011/12 with an estimated contribution to Revenue Reserves and a 0% change in precept/council tax as part of the Government’s national initiative to freeze council tax.

2012/13 TO 2014/15

5. Decisions taken by the Fire Authority on 4 March 2011 in relation to the 2011-14 Strategic Plan (SP) and Integrated Risk Management Plan (IRMP) for 2011/12 have allowed for a managed approach to balancing the budget over the short-term.

6. As a result of these early decisions, Members will recall the paper to the 24 June 2011 Fire Authority which highlighted that a scheme of Voluntary Redundancy and/or Compulsory Redundancy would not be needed during the 2011/12 financial year. The position was and remains that the Authority should be able to meet its requirements through natural wastage and retirement in the short-term.

7. The financial projections for 2012/13, 2013/14 and 2014/15 have been updated based on the latest assumptions and information and are shown in Appendix 1.

157 8. The key assumptions applied are shown in the Table below:-

Assumptions applied to the Medium-Term Financial Plan for 2012/13 to 2014/15

2012/13 2013/14 2014/15

Pay Awards 2.5% 2.5% 2.5%

External Grant* As notified provisionally in January 2011 -5.0% -5.0% Council Tax 2.0% 2.0% 2.0% Price Inflation - Utilities/Rates/Fuel 5.0% 5.0% 5.0% - Insurance & Income 2.0% 2.0% 2.0% - Other 0% 0% 0%

* These reductions in grant are in line with the ‘Middle’ scenario set out below and in Appendix 1. (6% cash reduction already suffered over 2011/12 and 2012/13 with a further 10% cash reduction assumed above. This with 2.25% inflation assumption over each of the 4 years 2011/12 to 2014/15 gives a 25% ‘real’ reduction over 2011/12 to 2014/15).

9. A number of uncertainties have been resolved over the last 12 months which impact on the Authority’s financial position. Principally these are:-

 SP/IRMP decisions;  2011/12 and 2012/13 Formula Grant Notification from Government;  2010/11 outturn.

10. There are however a number of issues that still remain uncertain as follows:-

 Years 3 and 4 of CSR10 (2013/14 and 2014/15) – Formula Grant Notification will not be known until late 2012;

 The review of the Fire and Rescue Formula Grant allocation mechanism;

 The Local Government Resource Review: Stages 1 and 2;

 The Localisation of Support for Council Tax in England;

 Pension impacts – potential increases in the Employer’s Contribution;

 Pay Awards – unrest building over the 2/3 year pay freeze placed on the public sector.

11. Appendix 1 tries to reflect those uncertainties by showing a middle, upper and lower set of scenarios for 2013/14 and 2014/15 as follows:-

More favourable than Middle - 15% real reduction in Formula Grant by 2014/15 Middle - 25% real reduction in Formula Grant by 2014/15 Less favourable than Middle - 35% real reduction in Formula Grant by 2014/15

12. 2013/14 onwards is a critical period and all of the scenarios would be exacerbated by any failure to deliver the initial £4.4m of efficiencies agreed in March 2011. These are already built into the MTFP for 2012/13 to 2014/15.

158 13. Members will see from the scenarios in Appendix 1 that in the least favourable scenario the Authority could have a circa £3.5m shortfall for the 2014/15 financial year.

14. In short, the period for 2013/14 onwards is highly uncertain and therefore decisions on the precept for 2012/13 and any additional expenditure commitments should be taken with this in mind.

15. Appendix 2 updates the Authority’s risk assessment for the Prudent Minimum General Reserve (PMGR).

16. The level now recommended is £5.5m and heightened risks around 2013/14 and 2014/15 are instrumental in this judgement. The outcomes of the first two years of CSR10, whereby a significant number of Fire Authorities had their Formula Grant reduced by 12.9% in cash-terms over 2011/12 and 2012/13, make this all the more real.

17. A further report will come before Members at the November/December round of meetings to set out the details of the budget for 2012/13.

STRATEGIC PLAN COMPATIBILITY

18. The Authority’s Medium-Term Financial Plan dovetails with the 2011-14 Strategic Plan and 2011/12 IRMP.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

19. The position for the medium-term will be kept under continuous review with regular reports from the Authority’s S.151 Officer.

LEGAL IMPLICATIONS

20. Statutorily the Authority must set a balanced budget. Part of this process also requires the S.151 Officer to comment on the ‘robustness of the estimates’, ‘the adequacy of reserves’ and the in-year ‘budget monitoring arrangements’.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

21. No direct issues arising.

CORPORATE RISK MANAGEMENT IMPLICATIONS

22. Setting a sustainable and prudent budget for the Authority is fundamental in mitigating one of the key risks in the Strategic Risk Register.

HEALTH AND SAFETY IMPLICATIONS

23. No direct issues arising.

COMMUNICATION ACTIONS ARISING

24. Key messages on the Authority’s financial position that were outlined at the July Member Day have been communicated to all staff.

DETAILS OF CONSULTATION

25. The key messages within this report have been discussed at the CMT as a backdrop for future service planning.

159 BACKGROUND PAPERS AVAILABLE FOR ACCESS

24. 22 June 2010 – Budget 2010 HM Treasury Medium-Term Financial Plan 2011/12 to 2014/15

RECOMMENDATIONS RESTATED

25. (a) That Members note the report and understand the potential financial challenges over the period to 2014/15.

(b) That the Prudent Minimum General Reserve (PMGR) be set at £5.5m in line with the Risk Assessment in Appendix 2.

K WILSON

Officer Contact: Kevin Wilson  01482 567183 Director of Finance/S.151 Officer

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

KW/SJ 16 September 2011

160 Appendix 1 HUMBERSIDE FIRE AUTHORITY REVENUE ESTIMATES 2012/13 ESTIMATE SUMMARY 2012/13 2013/14 2014/15 Budget Budget Budget Proposal Proposal Proposal

£££ Community Fire Safety 5,742,280 5,984,461 6,138,044 Fire Fighting & Rescue Operations 43,492,237 41,993,318 41,788,182 Fire Service Emergency Planning - - - Management & Support Services - - - Corporate & Democratic Core Democratic Representation & Management 181,764 183,133 184,514 Corporate Management 104,945 105,643 106,348 Non Distributable Income Council Tax Freeze Grant (561,428) (561,428) (561,428)

Net Cost of Service 48,959,798 47,705,127 47,655,660

Interest Payable and Similar Charges 1,330,529 1,486,507 1,570,798 Less - Interest Receivable (50,000) (50,000) (50,000)

Net Operating Expenditure 50,240,327 49,141,634 49,176,458

Depreciation and Impairment of Fixed Assets (3,560,392) (3,522,417) (3,327,738)

Minimum Revenue Provision 1,773,399 2,042,073 2,177,957 Revenue Contributions to Capital Outlay - - -

Contribution to/(from) Earmarked Reserves - - - Contribution to/(from) General Reserve - - -

Budget Requirement (A) 48,453,334 47,661,290 48,026,677

Financed by : Formula Grant 25,550,758 24,273,220 23,059,559 Collection Fund Surplus - - - Precept 22,906,244 23,364,369 23,831,656

Total Financing (B) 48,457,002 47,637,589 46,891,215

Surplus/(Deficit) (A-B) - Middle Scenario 3,668 (23,701) (1,135,462)

More favourable than Middle 25,550,758 25,295,250 25,042,298

Difference in Formula Grant - 1,022,030 1,982,739 Surplus/(Deficit) (A-B) 3,668 998,329 847,277

Less favourable than Middle 25,550,758 22,995,682 20,696,114

Difference in Formula Grant - (1,277,538) (2,363,445) Surplus/(Deficit) (A-B) 3,668 (1,301,239) (3,498,907)

161

162 Appendix 2 MEDIUM TERM FINANCIAL PLAN 2012/13 TO 2014/15 RISK ASSESSMENT TO DETERMINE PRUDENT MINIMUM GENERAL RESERVE (PMGR)

Reserve Type Financial Annual Period Where Risk Consequence Scale Likelihood % Required Loss £M Risk £M (years) Provided

£M Deeper/longer recession Lower Council Tax base £0.220M per 1% 0.220 20% 0.044 3 Reserves 0.132 reduction

Deeper/longer recession Lower collection of Council £0.220M per 1% 0.220 30% 0.066 3 Reserves 0.198 Tax reduction

Deeper/longer recession Reduced revenue income 25% decrease 0.030 20% 0.006 3 Reserves 0.018 Economic Adverse changes in interest Higher financial costs Net Debt circa £20M 0.200 20% 0.040 3 Reserves 0.120 rates 1%=£0.2M 163 Break insurance long term Increase in revenue costs 0.300 25% 0.075 3 Reserves 0.225 agreement

Energy and fuel costs Higher annual revenue costs 0.100 30% 0.030 3 Reserves 0.090 significant increases

Reduced Government Lower annual revenue £0.25M per 1%;assess 1.250 30% 0.375 3 Reserves 1.125 Grants - Formula Grant resources risk of further 5% reduction Higher pay settlements Higher costs £0.35M per 1% 0.350 30% 0.105 3 Reserves 0.315

Employment Single Status potential One-off costs £0.5M 0.500 10% 0.050 1 Reserves 0.050 claims

Flu pandemic or similar Increased employee absence 30% absence for 1 Month 0.875 25% 0.219 1 Reserves 0.219 event requiring cover at extra cost

Employer Pension Higher annual revenue costs 0.800 40% 0.320 3 Reserves 0.960 Contributiuon Increases 5.472 0.100 0.840 1.000 0.080 Reserves Reserves Reserves Reserves 1 1 3 1 1.000 0.100 0.280 0.080 10% 10% 20% 20% 1.000 1.400 0.400 10.000 Assume cost of £0.4M One-off shortfall £7M assess risk of 20% Assess risk of £10M fine Total General Reserve requirement ramme g capital resources available) Higher annual revenue costs outside existing replacement pro Fund from revenue (no Replacement of asset Unlimited Fine Capital Overspends Planned saving not achieved Corporate Manslaughter New Dimensions Assets The recommended Prudent Minimum General Reserve (PMGR) required to meet Assessed Financial Risks is £5.5M

Services General

164 Agenda Item No. 12.1

Humberside Fire Authority Report by the 27 September 2011 Chief Fire Officer & Chief Executive

OPPORTUNITIES FOR COLLABORATION BETWEEN HUMBERSIDE FIRE AND RESCUE SERVICE AND NORTH OR SOUTH YORKSHIRE FIRE AND RESCUE SERVICE

SUMMARY

1. At the June meeting of Humberside Fire Authority Members approved recommendations that Humberside Fire and Rescue Service (HFRS) entered into discussions with North Yorkshire Fire and Rescue Service (NYFRS) and South Yorkshire Fire and Rescue Service (SYFRS) regarding mergers, collaboration, the sharing of chief officers and shared management teams

2. Those discussions have taken place and it would appear that fire and rescue service mergers do not meet the aspirations of elected members or the communities they serve. Whilst a small number of local authorities share Chief Executives the position of a shared Chief Fire Officer/Chief Executive or the formation of a shared management team does not appear practicable due to significant differences in the way in which local Fire and Rescue Services manage risk and deploy resources.

3. The preferred partnership arrangement with NYFRS acknowledges the mutual benefits of joint working and should continue with a view to identifying opportunities for collaboration.

RECOMMENDATIONS

4. Members are asked to consider this report and approve the following recommendations:-

(i) Acknowledge that HFRS will not merge with another fire and rescue service.

(ii) Agree that HFRS will not share a Chief Fire Officer/Chief Executive or participate in a shared management team at this time.

(iii) Approve the continuation of the preferred partnership approach with NYFRS which will explore collaborative working where that benefits Humberside Fire Authority and the community it serves.

BACKGROUND

5. Members will recall that in June 2011 they were presented with a number of opportunities for collaboration with North and/or South Yorkshire Fire and Rescue Service. These discussions centred around a “preferred partnership” approach with NYFRS and proposals received from SYFRS to consider options for sharing Chief Fire Officers/Chief Executives, integrated management and more formal collaboration between the two Authorities. Members also discussed an earlier proposal from NYFRS to consider forming a shared management team with HFRS.

165 6. On conclusion of the debate Members approved the recommendations before them to:

(i) Continue development of the preferred partnership with NYFRS.

(ii) Continue exploration of a shared management team with NYFRS.

(iii) Commence discussions with SYFRS regarding the proposals set out in the letter from the Clerk and Treasurer of SYFRS (Appendix 1, paper 14, June HFA).

(iv) The presentation of a report to the September HFA detailing progress of Recommendations (i), (ii) and (iii).

7. CFO Hannigan subsequently met with CFO Hutchinson (NYFRS) to discuss the issues surrounding Recommendations (i) and (ii). The CFO’s agreed that they should first consider higher level options such as merger or a shared CFO/CE as decisions in these areas would shape the discussions around how the Services might collaborate.

8. Having taken political soundings from both Authorities it was agreed that a full merger of HFRS and NYFRS would be unlikely to meet the aspirations of Members or the communities they serve. There are also significant practical barriers to merger borne out of different risk profiles, different approaches to integrated risk management and the rejection by Government of the option to set a differential precept within a single combined fire authority. This led to the conclusion that a common response standard across a single, merged fire and rescue service could not be achieved rendering merger impracticable.

9. Having accepted that full merger was neither achievable nor in the best interest of either authority the feasibility of forming a shared management team was considered. This would likely involve the merging of HFRS and NYFRS Corporate Management Teams under a single Chief Fire Officer or Chief Executive. Whilst previous preferred partnership reports had identified many similarities between the services the discussion also explored the significant differences between them. The Humberside Fire Authority has developed and maintained a challenging set of response standards which have been proven to effectively manage the diverse risk found in the Service area. These standards require a significant number of whole time duty stations to meet the specified attendance times and weight of response. NYFRS manage their risk in a way that relies much more on retained duty system cover and day crewed cover. Whilst this results in longer average attendance times the nature of risk in North Yorkshire is such that they find this approach satisfactory.

10. From a fire prevention perspective there are many more households in the Humberside area at serious risk from fire than there are in North Yorkshire which means that HFRS has more staff dedicated to fire prevention than NYFRS. These differing risk profiles and resulting resource allocation mean that HFRS have a significantly larger budget than NYFRS. The CFOs concluded that the consequence of these differences in risk and funding is that a joint corporate management team could not effectively advise two separate political bodies particularly when budget pressures necessitate service cutbacks.

11. Work on the preferred partnership has progressed slowly due to the difficulties caused by each Service’s particular needs. NYFRS have decided to procure a new mobilising system that should be compatible with that in place in HFRS. They do not however foresee any efficiencies as a result of control room collaboration until 2015.

12. HFRS is working towards the procurement of a Resource Management System which should be compatible with those in use in South and North Yorkshire. This would offer the possibility of collaboration to provide resilience and to generate some

166

13. In response to Recommendation (iii) CFO Hannigan has been in contact with CFO Courtney of SYFRS to discuss collaboration. Cllr Briggs has also been in discussion with Cllr Andrews, Chair of the South Yorkshire Metropolitan Fire Authority. The feedback from these separate meetings was consistent in that SYFRS would prefer to work on the premise that they manage HFRS rather than collaborate on an equitable basis. In addition to this, SYFRS have the control capacity to mobilise HFRS operational resources and would like to provide that service in its entirety. This was fed back to HFA Members during a Member Day in July and those who were present did not wish to collaborate on terms which would make HFRS something of a junior partner.

14. Those Members were united in their view that HFRS is a viable and effective organisation and should maintain its ability to function as an independent FRS in order to meet the expectations of local people.

15. As a consequence of the meetings held in July the way forward for HFRS is clear. Humberside Fire and Rescue Service will not merge with another nor will it form a shared management team. Fire Futures has confirmed that the Government is adopting a less prescriptive approach to the Fire and Rescue Service which means that the Humberside Fire Authority will need to form its own view on the future direction of the Service. CMT believe that this should be articulated as a ten year vision, development of which is covered in Agenda item 13. Providing value for money will be a basic principle within that vision and as such the service must continue to seek opportunities to collaborate with other organisations.

16. With that in mind HFRS was recently approached by Lincolnshire FRS with a request to have preliminary discussions around the possibility of joint mobilising. As Lincolnshire FRS use the same mobilising system as HFRS joint working could be achieved relatively easily. CFO Hannigan has therefore sanctioned these discussions and will report back to Members on progress.

STRATEGIC PLAN COMPATIBILITY

17. The recommendations contained in this report deal with elements of Strategic Objective 4: Making the Best Use of Resources.

FINANCIAL RESOURCES/VALUE FOR MONEY IMPLICATIONS

18. Whilst mergers, shared CFO/CFO and shared management teams may have yielded some savings these would have been offset by start-up cost, at least in the first year. Savings are now being sought by internal restructure and collaborative working with NYFRS and other organisations. LEGAL IMPLICATIONS

19. None at this time.

QUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

20. No EIA implications.

CORPORATE RISK MANAGEMENT IMPLICATIONS

21. Having removed a number of options the Service can now move forward in greater certainty.

167 HEALTH AND SAFETY IMPLICATIONS

22. None.

COMMUNICATION ACTIONS ARISING

23. Members’ decisions will be communicated to all personnel.

DETAILS OF CONSULTATION

24. Not appropriate.

BACKGROUND PAPERS AVAILABLE FOR ACCESS

25. Paper 14 “Opportunities for Collaboration” HFA 24th June 2011.

RECOMMENDATIONS RESTATED

26. Members are asked to consider this report and approve the following recommendations:-

(i) Acknowledge that HFRS will not merge with another fire and rescue service.

(ii) Agree that HFRS will not share a Chief Fire Officer/Chief Executive or participate in a shared management team at this time.

(iii) Approve the continuation of the preferred partnership approach with NYFRS which will explore collaborative working where that benefits Humberside Fire Authority and the community it serves.

R HANNIGAN

Officer Contact: Richard Hannigan  01482 567417 Chief Fire Officer & Chief Executive

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

RH/EML 19 September 2011

168 Appendix 1 Agenda Item No.

Humberside Fire Authority Report by the 24 June 2011 Chief Fire Officer and Chief Executive

OPPORTUNITIES FOR COLLABORATION BETWEEN HUMBERSIDE FIRE AND RESCUE SERVICE AND NORTH OR SOUTH YORKSHIRE FIRE AND RESCUE SERVICE

SUMMARY

1. The Humberside Fire and Rescue Service Strategic Plan 2011-14 outlines a number of workstreams which aim to identify how the Service might better use its resources to deliver more efficient services. The workstreams include collaboration, shared management teams and the possibility of merger with another fire and rescue service. All of these initiatives have subsequently been echoed in the government’s response to Fire Futures and in a letter from the Fire Minister.

2. Following discussions with neighbouring Fire and Rescue Services and with Unitary Authority Chief Executives, the Corporate Management Teams of Humberside Fire and Rescue Service and North Yorkshire Fire and Rescue Service have agreed to explore the potential for closer collaboration.

3. A Joint Programme Board has completed an initial scoping exercise and has agreed to progress a number of collaborative proposals under a “preferred partnership” arrangement.

4. Such an arrangement would likely lead to the sharing and rationalisation of a number of functions common to both services with the prospect of driving out efficiencies in the senior management teams.

5. Since commencing discussions with North Yorkshire Fire and Rescue Service the Secretary to the Humberside Fire Authority has received a letter proposing discussions about the possibility of collaboration with South Yorkshire Fire and Rescue Service which includes the option of sharing a Chief Fire Officer or Chief Executive.

6. The terms of the “preferred partnership” with North Yorkshire do not preclude discussions with other potential partners therefore it would be appropriate for officers to meet with their South Yorkshire colleagues to discuss the letter attached at Appendix 1.

RECOMMENDATIONS

7. Members are asked to consider this report and to approve the following recommendations:

1. Continue development of the “preferred partnership” approach with North Yorkshire Fire and Rescue Service. 2. On a ‘no-commitment’ basis, continue exploration of a number of collaborative opportunities (detailed in paragraph 14) with North and South Yorkshire Fire and Services. 3. The presentation of a report to the September HFA detailing progress of recommendations 1, 2 and 3.

169 BACKGROUND

8. The Humberside Fire and Rescue Service Strategic Plan 2011-14 approved by Members in March 2011 outlines a number of research workstreams which will aim to identify how the Service might better use its resources to deliver more efficient services. This work includes options such as full mergers with other Services, shared management teams and shared or outsourced support services.

9. Members will recall that from 2004 up to its dissolution in 2010 the Regional Management Board was the main forum for collaboration between the four FRAs in the Yorkshire and Humber region. Dissolution of the RMB enabled consideration to be given to collaboration with a wider range of potential partners in various areas of work. To this end discussions have taken place with all neighbouring Fire and Rescue Services and with Unitary Authority Chief Executives.

10. Whilst there was some potential for partnership or outsourcing work to the Unitary Authorities there was little commonality of purpose with these bodies and this would likely have led to a commissioner / provider relationship rather than a true partnership. Whilst this type of relationship has been successful in delivering generic functions such as payroll the Unitary Authorities would be less likely to be able to deliver services specific to fire and rescue. Because of this officers made the decision to focus, in the first instance on seeking a fire and rescue partner.

11. The discussions with South Yorkshire and Lincolnshire indicated that the time and conditions were not right for closer collaborative working and as a consequence of those discussions the CFOs of Humberside Fire and Rescue Service and North Yorkshire Fire and Rescue Service have since met to discuss the potential for closer collaboration.

12. During those discussions a number of common factors were identified that provide a solid foundation on which to build a partnership. These factors are:

 Governance Model (CFA)  Rural and urban mix  Similar strategic objectives  The need for efficiencies  Mutual respect

13. Both parties therefore agreed to explore the potential of adopting a “preferred partnership” arrangement. In this context “preferred partner” means that Humberside Fire and Rescue Service would look to North Yorkshire Fire and Rescue Service in the first instance before entering into any collaboration or partnership arrangement with other authorities or providers and vice versa. This arrangement would not however preclude partnerships with other organisations.

14. To progress this approach Humberside Fire and Rescue Service and North Yorkshire Fire and Rescue Service have formed a Joint Programme Board to scope out and evaluate the potential for collaboration in the following areas of activity:-

 Control Room/Mobilisation  Operations and service delivery (specifically operational policy, procedures and training)  Technical Services  Community Safety  Human Resources  Corporate Communications and Engagement  Governance/Monitoring Officer/Legal  Payroll and Pensions

170 The above list is not exhaustive but it is of note that the majority of opportunities lie in the support functions which may lead to service improvements and/or management efficiencies, particularly in these areas.

15. The scoping work will take place over the summer and the results of that work would be brought before Members in September 2011.

16. Members will be aware that in March 2010 the Chair of North Yorkshire Fire Authority approached the Chair of Humberside Fire Authority with a proposal to consider forming a shared management team which could potentially serve both Authorities at a lower cost than existing arrangements. This was put before Members in April 2010 who, having regard for the volume and complexity of work then in hand chose to defer the proposal for 12 months.

17. As 12 months had passed since the Fire Authority decision the CFOs considered it timely to revisit the subject of senior management efficiencies particularly in the light of the collaborative work now being discussed.

18. The CFOs agreed that from a practical perspective it might be possible to move to a shared management team within two to three years but that such a proposal would require the allocation of significant time and energy to ensure that any such arrangement met the needs of both Authorities. They further agreed that such a proposal would require a firm mandate from both Authorities.

19. The initial scoping exercise has indicated that a full merger of Services would be unlikely to meet the diverse needs of both Authorities and that there is insufficient senior management capacity to undertake the comprehensive feasibility study essential to the success of such a radical proposal. The implication of this is that full merger is not a short-term option.

20. Since commencing discussions with North Yorkshire Fire and Rescue Service the Secretary to the Humberside Fire Authority has received a letter (Appendix 1) from the Clerk and Treasurer of South Yorkshire Fire and Rescue Service.

21. South Yorkshire Fire and Rescue Service are in a similar situation to Humberside Fire and Rescue Service in that they have not permanently appointed a Chief Fire Officer following the retirement of the previous incumbent.

22. The letter invites Humberside Fire and Rescue Service to discuss options for sharing Chief Fire Officers or Chief Executives, integrated management or more formal collaboration between the two Authorities.

23. The current scoping work with North Yorkshire Fire and Rescue Service referred to earlier in this report requires a significant amount of Corporate management capacity and is likely to continue to do so for some time. Whilst it is possible to achieve this and deliver our existing priorities duplication of that work with South Yorkshire Fire and Rescue Service could not be achieved simultaneously.

24. South Yorkshire Fire and Rescue Service are working to a tight timescale, hoping to deliver an initial report to their Authority by June or July 2011.

25. Bearing this timescale in mind and the possible benefits of collaboration with South Yorkshire Members are asked to permit officers to meet with South Yorkshire colleagues to quickly establish if the South Yorkshire option has the potential to yield measurable benefits. Such an approach would be within the terms of the “ preferred partnership” with North Yorkshire.

171 26. Whilst there are likely to be significant benefits to be gained from working in partnership with North or South Yorkshire there would need to be assurance that certain conditions were met and in due course Members may wish to consider some parameters for any collaborative agreement. Examples of these might be the retention of an identifiable ‘Humberside FRS’, self determination or ‘sovereignty’ through appropriate governance structures (including a CFO) and no compromise of operational service delivery and response standards. The Authority could, in this way, be assured that Humberside Fire and Rescue Service will only enter into partnerships or management arrangements that show clear benefits for all participants whilst retaining the ability of its Members to be free to respond to the needs of their communities.

STRATEGIC PLAN COMPATIBILITY

27. This paper is linked to the delivery of Strategic Objective 4, Making the best use of the resources we have to deliver more efficient services.

FINANCIAL RESOURCES/VALUE FOR MONEY IMPLICATIONS

28. Depending on the extent of collaboration the arrangement outlined in this paper have the potential to yield significant efficiency savings.

LEGAL IMPLICATIONS

29. Currently dealt with in governance arrangements in Appendix 1. Legal advice is available to the joint programme board.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

30. None at this time.

CORPORATE RISK MANAGEMENT IMPLICATIONS

31. None at this time though joint working is likely to present risk management challenges.

HEALTH AND SAFETY IMPLICATIONS

32. None at this time

COMMUNICATION ACTIONS ARISING

33. Confined to discussions between CMT Members at this time though there will be a series of papers to members should the work progress.

DETAILS OF CONSULTATION

34. None at this time

BACKGROUND PAPERS AVAILABLE FOR ACCESS

35. Appendix 1 – Letter from SYFRS

172 RECOMMENDATIONS RESTATED

36. Members are asked to consider this report and to approve the following recommendations:

1. Continue development of the “preferred partnership” approach with North Yorkshire Fire and Rescue Service. 2. On a ‘no-commitment’ basis, continue exploration of a number of collaborative opportunities (detailed in paragraph 14) with North and South Yorkshire Fire and Services. 3. The presentation of a report to the September HFA detailing progress of recommendations 1, 2 and 3.

R HANNIGAN

Officer Contact: Richard Hannigan  01482 567417 Chief Fire Officer

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

RH/EML 3 June 2011

173

174 Our ref: WJW/FM Appendix 1

Your ref:

Date: 20 May 2011

MrYour R Grahamref: Secretary HumbersideDate: Fire Authority Brigade Headquarters Summergroves Way, Hull, North Humberside HU4 7BB

This matter is being dealt with by: Bill Wilkinson Direct Line: 01226 772803 email: [email protected] Fax No: 01226 772899

Dear Robin

Opportunities for collaboration between Humberside and South Yorkshire Fire and Rescue Authorities

I am making initial contact with you following a recent discussion at South Yorkshire, arising out of the retirement of the Chief Fire Officer and the decision of the former Deputy to take full retirement rather than return to the Brigade for a fixed term. The latter proposal would have provided a period of stability while the Authority considered its long term options for managing the service. The Authority has decided to continue with the review of options, but to a shorter timescale. I have been asked to bring back an initial report in June or July.

The options we are considering include retaining the traditional arrangement of a professionally trained and experienced career firefighter, and the alternative approach taken in Durham and Kent of appointing a Chief Executive without a career background in the FRS.

We also want to consider any opportunities for shared arrangements with neighbouring Brigades, in order to assess the operational and managerial pros and cons of such an approach. That is the background to this letter. Shared arrangements could include sharing of Chief Officers, integrated management, or more formal collaboration between the two Authorities.

Members have asked me to approach Humberside initially with a view to exploring – on a “no commitment” basis at this stage – whether there are opportunities that may be worth considering further as part of our review. I would be grateful if you would let me have your initial views. The preliminary stage might be a discussion at Clerk/Treasurer level.

Regards

Bill Wilkinson Clerk and Treasurer

175

176

Agenda Item No. 12.2

Humberside Fire Authority Report by the Deputy Chief 27 September 2011 Officer/Director of Operations

STRATEGIC PLAN 2011 – 14 REVIEW OF NON-FRONT LINE SERVICE DELIVERY

SUMMARY

1. On 24 January 2011 Members approved the Strategic Plan 2011-14 containing key objectives aimed at effectively delivering the Service to 2014. In that report it was noted that there was a perception from many consultees that it appeared that all the savings appeared to be generated from front – line economies. Whilst the term ‘front- line’ and what is and isn’t included in that category can be a subject of debate it should be noted that for the purposes of this report it is used merely to describe posts involved in service delivery activity that do not include the riding of fire appliances. A further report on this meeting’s agenda will cover posts involved in corporate support activity. This report updates members on progress against the Strategic plan 2011-14 in preparation for a more detailed report in December. The review work carried out has been framed within the following objectives:

Strategic Objective 4 – Making the best use of resources we have to deliver more efficient services Strategic Objective 5 – Establishing new ways of working to deliver more effective services

2. In carrying out the review Members are reminded of their approval to use a ‘Systems Thinking’ approach to determining the best outcomes in terms of managerial layers and spans of control as well as functional processes.

3. CMT have broadly separated this approach to cover three areas of Service, namely:

 Collaboration  Non-front line service delivery  Corporate support.

4. This report outlines proposals for the re-alignment of non-front line service delivery which have resulted from taking the systems thinking approach i.e. Purpose- Outcomes-Priorities to our non-front line service delivery activities and the result of the trial management structure within CPU’s undertaken between Oct 2010 – April 2011 set against an agreed terms of reference and critical success factors.

5. The need to review our Community Safety Strategy following the outcomes of the Fire Death and Injury Panel (FDIP) findings, reported to the Fire Authority at its last meeting, have also been incorporated into the proposals.

6. Work to review collaboration opportunities and corporate support services are being reported on separately on this meeting’s agenda and Members can be assured that the impact of each review on the other has been fully accounted for.

RECOMMENDATIONS

7. It is recommended that the Authority consider and note the progress outlined in the report in readiness for a fully costed set of proposals to be brought to the December meeting of the full Fire Authority. 177 REPORT DETAIL

8. As part of the Governments comprehensive spending review there is a requirement on the service to introduce significant spending cuts in order to maintain a balanced budget. With this in mind the approved Strategic Plan for 2011-14 included, so called ‘de-invest’, projects designed to review a number of areas of collaboration, non-front line service delivery and corporate support. These reviews were intended to compliment and contribute to proposals already approved by the Authority in its IRMP 2011 - 12.

9. The Authority agreed at the time to take a ‘whole system approach’ to redesigning our non-front line/support services with the aims of eliminating inefficiency and waste in this arena and this lent itself to applying ‘systems thinking’ methods to the project.

10. With this in mind the current T/DCO and AM Policy and Performance embarked on a development programme at the University of Hull Business School (HUBS) introducing the systems thinking approach which has now been successfully completed. This approach is predicated on ‘customer needs’, doing more for less, addressing efficiency and improving service delivery and processes. Interestingly, in a recent research poll over 65% of public sector respondents were using this approach to create efficiencies and over 70% of those reported outcomes that were either ‘very good’ or ‘excellent’.

11. In keeping with the systems thinking approach a trial management structure within CPU’s was initiated in Oct 2010 with a specific terms of reference and defined critical success factors. The trial sought to establish the tenability of a single Group Manager within each CPU, effectively combining the previous roles of Service Delivery Manager and Community Risk Manager. The outcome of the trial demonstrated that this model is indeed feasible however a number of further recommendations were made to facilitate this approach in the long term. These included improved ways of working, realignment of existing resources to further increase efficiency savings and some additional areas of support requiring some limited re-investment of net overall savings (Proposals 1- 8 below).

12. These proposals, if fully implemented, will net savings on an on-going basis while maintaining and, in some instances, delivering an improved level of service to our communities.

Proposal 1 – Merge the Service Delivery Manager (SDM)/Community Risk Manager (CRM) Group Manager roles in each CPU

This proposal is put forward as a result of the CPU Management Re-alignment trial which has been running since Oct 2010. The trial has been evaluated against a number of critical success factors and it has been concluded that CPUs can be run successfully under the proposed managerial structure, indeed, a number of benefits have been identified. However, those involved in the trial also identified some areas of further investment which would be required to offset the loss of managerial capacity particularly in the area of HR support (see below).

The proposal seeks to combine the role of Service Delivery Manager and Community Risk Manager into a single CPU Manager post.

Implementing this proposal would result in the loss of a Group Manager post from the overall establishment in line with the IRMP Proposal: FDS Officer Review, which has recently been approved and will be implemented by 1 October 2011.

178 Proposal 2 – Review the roles of Technical Training Officers (WMs)/Personal Development Advisors (WMs) and Risk Reduction Officers (CMs)

This proposal seeks to establish a new role, which reflects the current and emerging needs of CPU’s in terms of training delivery, operational support and risk management. Currently these activities are undertaken, to a limited degree, by nine Risk Reduction Managers (Crew Managers) and nine Personal Development Advisors (Watch Managers). The establishment of 16 new posts will effectively amalgamate these roles into a more clearly defined post with a wider remit to address the new challenges facing CPU’s in supporting operational delivery, this underpins the need to ensure operational competence. The reduction will be achieved through vacancy management.

It is also proposed that the existing cadre of ten centrally based Technical Trainers assume the same role map given the obvious synergy within the roles described above. This will allow for a degree of resilience and also additional capacity to service both the needs of CPU’s and Central Training based on risk. It is envisaged that staff within these roles will be able to operate much more flexibly and move between the various areas/disciplines as required by the needs of the Service at any given time.

This proposal has been informed by a successful trial of this structure within North Lincolnshire CPU which has seen radical improvements in the availability and competence of staff at the trial station (Kirton in Lindsey). However in order to facilitate these arrangements a number of existing processes will need adaption/streamlining (e.g. NVQ support) to ensure sufficient capacity is available.

Some of the savings from this proposal will be re-invested in re-engineering some CPU based administrator clerk roles to provide the necessary operational risk information administrative capacity. This will, largely, facilitate the implementation of IRMP 2011-12 Proposal 7: Increased capacity for the management of operational risk information.

Proposal 3 – Human Resource (HR) Support within CPUs

Following the feedback from the CPU management trail it was established that HR issues presented a particular challenge in terms of the time available to deal effectively with this area. This significantly reduced the capacity of the CPU Manager to manage the wider range of issues falling to the combined SDM/CRM role.

In addressing this issue it is proposed that existing CPU administrator managers undertake training within the HR arena (CIPD Foundation level) in order to deal with a wider range of HR issues and become more aligned with the HR central support function. It is proposed that the detailed report in December regarding the Review of Corporate Support addresses the CPU needs with regard to their capacity issues and HR central support.

Proposal 4 – Merge the Education Liaison Officer (ELO) and Community Safety Advocate (CSA) roles and reduce the overall establishment.

A fundamental review of the ELO role was undertaken in 2010, this report recommended that the ELO be amalgamated with the role of the CSA. This is in keeping with the more general role of CSA’s in regard to educational delivery. Combining the role of ELO’s with CSA’s also provides greater flexibility and resilience particularly during school leave periods were there is limited scope to utilise the skills of ELO’s effectively.

Feedback as a result of the CPU management trial and through the Fire Death and Injury Review Panel (FDIP) indicates that there is also an opportunity to refocus the range of existing activities undertaken within the Community Safety arena. This is

179 based on meeting the needs of the most vulnerable as indicated in the paper tabled before HFA analysing fire deaths. In taking this approach it may be possible to rationalise the number of personnel allocated to this area. Through the management of existing vacancies it has already been possible to demonstrate the sustainability of this approach. Detailed proposals and potential savings, where identified, will be outlined in the December report.

Proposal 5 – Realign Central Support Provision

Following a range of development and implementation work in terms of CPU based activity, the need for on-going provision within some areas of central support will be reviewed. These cover three distinct areas, namely, Partnerships, Safeguarding and Performance Management within the Learning Centre.

The current Partnership arrangements in place are now well embedded and ownership has been transferred to CPU staff. There is also a clear overlap with a range of activities undertaken within the Corporate Communications section. It is proposed that the more detailed report in December regarding the Review of Corporate Support takes this opportunity to re-assess the Services needs in this regard.

In response to the serious case review relating to Aaron Smith the Service established the roles of Safeguarding Manager and an assistant (Grade 6). As Safeguarding arrangements have become established and embedded both within the Service and partner organisations the need for extended support within this area has reduced. Again, through careful vacancy management it has been possible to establish the sustainability of our safeguarding arrangements. It is proposed that the more detailed report in December takes this opportunity to re-assess the Services needs in this regard.

The establishment of the Learning Centre was a 2008/11 IRMP task and has now been fully implemented. At the time there was a requirement to ensure the delivery of the BTEC program met the stringent requirements of the awarding body and OFSTED. However, these arrangements are now embedded and as a result the December report will outline proposals for performance management support in this arena.

Proposal 6 – Establishment of Road Safety Posts.

IRMP 2008/11 – Task 5 reflected the growing risk around road traffic collisions both with regard to operational training and education. In response a dedicated technical training post was established along with two advocate posts to support our partnership involvement in Safer Roads Humber through the ‘iCar’ Project.

It is proposed that all three posts be permanently added to the establishment. This proposal is cost neutral as a result of the on-going revenue funding arrangements detailed above.

Proposal 7 – Implement Changes to the Role of a Number of Control Based Staff

This proposal will allow for posts which are required to manage operational communications and the central co-ordination of risk information to be established utilising existing posts which have been freed up by more efficient crewing arrangements in Control. These arrangements will deliver some of the requirements of the previous FARMSS audit around the management of risk information and also the Project to “Strengthen the management and resourcing of operational risk information” which was approved by the Authority as part of IRMP 2011-12 and is referred to elsewhere on the agenda. These have already been running as a

180 temporary trial and have provided improvements in the two areas with no negative effect in Control. . Proposal 8 – Reduce the Operational Staffing in the Research and Policy Section

This proposal will remove one Watch Manager post from the Research and Policy Section. The proposal is linked to the Corporate Support Review in that the outcome of that work will determine whether the post will be removed entirely or replaced by additional administrative support, this will be outlined in the December report. There will be financial savings with either solution. Any reduction will be managed by careful vacancy management.

STRATEGIC PLAN COMPATIBILITY

13. The proposals outlined in this report comply with the Service Strategic Plan 2011-14 particularly strategic objectives 4 and 5.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

14. Implementation of the review work outlined in this report may yield significant net revenue savings which will compliment and contribute to the savings from front line service delivery functions outlined in the IRMP 2011-12 proposals already approved. However, Members are reminded that limited re-investment of these savings will be necessary to fully implement the reviews in the three areas indicated earlier, namely, collaboration, non-front line service delivery and corporate support.

LEGAL IMPLICATIONS

15. None arising directly at this time.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

16. The proposals set out in the report will be subject to an equality impact assessment the results of which will be described in the December report as indicated.

CORPORATE RISK MANAGEMENT IMPLICATIONS

17. None arising directly.

HEALTH AND SAFETY IMPLICATIONS

18. None arising directly.

COMMUNICATION ACTIONS ARISING

19. Details of the proposals and their implementation will be communicated widely subject to Fire Authority approval.

DETAILS OF CONSULTATION

20. The nature of some of the proposals will necessitate a full formal consultation process with the representative bodies which will be commenced subject to Fire Authority approval. In the meantime informal consultation will be taking place with key managers and stakeholders in preparation for the December report.

181 BACKGROUND PAPERS AVAILABLE FOR ACCESS

21. HFA Report 24/01/2011 – Strategic Plan 2011 - 2014 HFA Report 19/04/2011- Analysis of fatal injuries in accidental dwelling fires. CPU Realignment trial terms of reference/critical success factors.

RECOMMENDATIONS RESTATED

22. It is recommended that the Authority consider and note the progress outlined in the report in readiness for a fully costed set of proposals to be brought to the December meeting of the full Fire Authority.

D SANDERS

Officer Contact: Dene Sanders  01482 567413 Director of Operations

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

DS/ST 5 September 2011

182 Agenda Item No. 12.3

Humberside Fire Authority Report by the Director of Finance/ 27 September 2011 S.151 Officer and Secretary/Director of People

STRATEGIC PLAN 2011-14 WORKSTREAM – TRANSFORMATION/DEINVEST CORPORATE SUPPORT

SUMMARY

1. Some of the key workstreams set out in the recently approved Strategic Plan 2011- 14 included mergers, shared chief/management teams. Management layers and deinvest in non frontline services. This paper should be read in conjunction with the collaboration update and deinvest/transformation in community safety.

2. This report recaps on some of the non-operational efficiencies delivered to date and also identifies some preliminary additional efficiencies achieved within Corporate Support for approval.

3. The report also highlights that a paper will be brought back to the December Fire Authority outlining broad timelines and workstreams for a further more considered review of Corporate Support functions. This will entail an alignment of functions to strategic priorities and accordingly a restructuring. Hence the lead-in time is significant and there will be a need to develop early next year a compulsory and voluntary redundancy scheme.

RECOMMENDATIONS

4. Members are asked to consider this report and endorse the actions taken to date.

BACKGROUND

5. One of the Strategic Plan 2011-14 workstreams agreed on 4 March 2011 was to examine possibilities for Deinvestment in Corporate Support Services, as well as other areas of non-frontline operational delivery.

6. This report represents the first stage in that process. Corporate Support and Management represents circa 12% of overall Authority expenditure.

7. To date non-operational efficiencies have been generated as follows:-

 Senior Management - £290k (resulting from holding vacant 1 x ACO role and 2 x AM roles);

 Discretionary expenditure - £260k (a full review of areas of discretionary procurement was undertaken to identify efficiencies).

DEINVEST – CORPORATE SUPPORT

8. Members will recall that Corporate Support has largely had an external recruitment freeze for the last two years. A prudent approach has been adopted in Corporate Support regarding managing vacancies. Certain posts have not been filled and some appointed temporarily. This has put a further strain on certain areas of Corporate Support, but it has been necessary in terms of future flexibility and anticipating

183 budget reduction. Members should note that this approach has relied very heavily on staff goodwill to ensure that key roles are performed.

9. This action has meant that underspends on Corporate Support pay have been circa approaching £300k per annum.

10. The Director of Finance/S.151 Officer and the Director of People have reviewed the potential to permanently remove some of the current vacancies in the establishment.

11. It is felt that the vacant posts and the associated funding, as set out in Appendix 1, can be removed, albeit that the capacity and added benefits that those posts would have added will be lost with of course an impact upon other postholders. These efficiencies identified, whilst opportunistic in nature, are immediately deliverable.

NEXT STEPS

12. A further report will be submitted to the Fire Authority at its December meeting.

13. The shape of that paper will depend heavily upon whether collaboration materialises as reported elsewhere on this agenda. If there is not to be collaboration, for example a shared management team/functions or perhaps a combined Corporate Support, then time and energy needs to be diverted to reviewing Corporate Support services outlined earlier.

14. In so doing, some clear parameters will be needed, not least of which will be the level of savings to be targeted (ignoring for now impact and priorities). The level of service required will be dictated by priorities for the Service, along with budget constraints. Corporate Support Services will be aligned accordingly, and in line with process re- engineering. Undoubtedly this will mean adjusting expectation and demands, but focusing upon an effective and efficient Corporate Support Service for the resources deployed.

15. Further opportunities and flexibilities may arise if the Authority elects to run a Voluntary Redundancy scheme in 2012/13. The release of staff that volunteer to be considered may therefore allow further efficiency opportunities to be pursued.

STRATEGIC PLAN COMPATIBILITY

16. This report updates on one of the key workstreams agreed as part of the Authority’s 2011-14 Strategic Plan.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

17. If approved, the efficiencies contained within this report will be incorporated in to the budget for 2012/13 onwards.

LEGAL IMPLICATIONS

18. None arising directly but the Authority must consider efficiencies in some areas of support very carefully to ensure that legal and statutory responsibilities can continue to be met.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

19. None arising directly.

CORPORATE RISK MANAGEMENT IMPLICATIONS

20. None arising directly but the Strategic Risk (ref. sl/sr/249/sr) referring to CSR years 3 and 4 is mitigated in some small part by the approval of the efficiencies in the report.

184

HEALTH AND SAFETY IMPLICATIONS

21. None arising directly.

COMMUNICATION ACTIONS ARISING

22. Staff have been made aware that the Authority will not be undertaking a Voluntary Redundancy scheme in 2011 and this remains the position. A review of this position will, as planned, be undertaken early in 2012.

DETAILS OF CONSULTATION

23. Senior Managers within Corporate Services have been involved in the discussions aimed at identifying efficiencies.

BACKGROUND PAPERS AVAILABLE FOR ACCESS

24. Strategic Plan 2011-14.

RECOMMENDATIONS RESTATED

25. Members are asked to consider this report and endorse the actions taken to date.

K WILSON R GRAHAM

Officer Contact: Kevin Wilson  01482 567183 Director of Finance/S.151 Officer

Robin Graham  01482 567443 Secretary/Director of People

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

KW/SJ 19 September 2011

185

186 Appendix 1

Establishment Changes Grade Post No. Net Saving inc. on costs (£K’s)

Proposed deletion of 0.5 x Photographer / Graphic Designer 5 SS115 11 (vacant post)

Proposed deletion of Admin and Member Support Manager 13 SS304 52 (vacant post)

Deletion of Clerk/WP Operator 3 SS024

Establishment of 0.5 x Asst HR 7 Officer 5 SS303

(Approved by Decision Record)

Proposed deletion of funding for 2nd Custodian post 2 14 Re-grading of Custodian G2 to 4 SS093 G4. (Approved by Decision Record)

Proposed deletion of Apprentice 7 SS088 28 Vehicle Technician (vacant post)

Proposed deletion of 1 x IT 5 Technician (vacant post) To be 12 determined Proposed re-grading of 1 x IT 8 Technician G5 to G8

Proposed deletion of Pensions 7 SS037 9* Officer (vacant post)

Proposed deletion of 0.5 x 4 SS326 10 Clerical Assistant (vacant post)

TOTAL 143

*Residual saving after funding external pension service

187

188 Agenda Item No. 12.4

Humberside Fire Authority Report by the Chief Fire Officer & 27 September 2011 Chief Executive

IRMP 2011/12 – SMALL FIRES UNIT (SFU)

SUMMARY

1. This report updates Members on the latest position with regard to the introduction of a Small Fires Unit into the Service as a result of the 4 March 2011 Fire Authority decision in respect to an IRMP 2011/12.

2. The report notifies Members that the order for the vehicle has been placed and funding identified to ensure that there is the best possible chance that the vehicle will be operational for the traditionally busy period of late October to mid November.

RECOMMENDATIONS

3. That Members ratify the decision taken by the Chief Fire Officer & Chief Executive to order the Small Fires Unit.

SMALL FIRES UNIT (SFU) - UPDATE

4. Members will be aware of their approval on 4 March 2011 of IRMP Proposal 6: Introduce a Small Fires Unit (SFU). To this end the Operational Assurance Board have been working through the specification and options to implement this project within similar timeframes to the remainder of the IRMP Projects.

5. Members should be reminded of the decision to procure a new purpose built SFU rather than retro fit an existing chassis. It was felt that this would be more technically robust and avoid the need to replace any existing Service vehicle that would be used for the adaptation.

6. The original £20k earmarked for the SFU was identified as part of the 2012/13 Capital Programme. The detailed work to bring the SFU on line has been completed ahead of schedule and therefore the decision to place the order in the current year has been taken. This gives the Authority the best possible chance of having the vehicle operational for the traditionally busy late October to mid November period.

7. The £40k required to procure the vehicle (£20k body and £20k chassis) can be accommodated from the Authority’s 2011/12 revenue contingency budget. Clearly, the £20k identified in the 2012/13 Capital Programme for the SFU can subsequently be removed.

8. This report outlines the positive, proactive steps taken to deliver IRMP Proposal 6 to ensure that the SFU is operational as soon as possible.

STRATEGIC PLAN COMPATIBILITY

9. The SFU IRMP Proposal 6 is part of the 2011/12 IRMP approved by Members on 4 March 2011.

189 FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

10. The £40k required for the SFU can be readily accommodated within the contingency held by the Authority for 2011/12 (£100k in total).

LEGAL IMPLICATIONS

11. Under the Constitution, the decision to vire capital is a matter for Members. The capital allocation for the SFU is in the 2012/13 programme, and this was around refurbishment of an existing vehicle rather than a bespoke build in any event. Under the Constitution, the Chief Fire Officer & Chief Executive has power under Part 3, Section 2, paragraph 2, to take any urgent action between meetings of the Authority. The justification for the urgent action is detailed in paragraphs 4 to 8 of this report. Consultation has taken place with the Statutory Officers and the Chair of the Authority. The Constitution requires that any action taken of this nature be reported to the next Authority meeting.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

12. This vehicle will be crewed from posts that are temporarily over our establishment as a result of implementing IRMP Proposals 1, 2 and 4 in the first instance. Research is currently underway to identify cost neutral crewing options in the long term.

CORPORATE RISK MANAGEMENT IMPLICATIONS

13. No direct issues arising.

HEALTH AND SAFETY IMPLICATIONS

14. No direct issues arising.

COMMUNICATION ACTIONS ARISING

15. The introduction of a SFU has been widely communicated within the Service as part of the 2011/12 IRMP proposals.

DETAILS OF CONSULTATION

16. Corporate Management Team.

BACKGROUND PAPERS AVAILABLE FOR ACCESS

17. Detailed specification for the SFU and Operational Assurance Board Minutes/ Discussions.

RECOMMENDATIONS RESTATED

18. That Members ratify the decision taken by the Chief Fire Officer & Chief Executive to order the Small Fires Unit.

R HANNIGAN

Officer Contact: Dene Sanders  01482 567413 Deputy Chief Officer/Director of Operations

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

KW/SJ 14 September 2010 190 Agenda Item No. 13

Humberside Fire Authority Report by the 27 September 2011 Chief Fire Officer & Chief Executive

ORGANISATIONAL DEVELOPMENT 10 YEAR VISION

SUMMARY

1. Humberside Fire and Rescue Service (HFRS) has for some time worked to a three year planning cycle dictated by external factors. This has held back cultural and structural change of the organization which requires longer term planning. This paper outlines how a 10 year vision will facilitate that change and how the vision will be developed. This fits into the fresh approach being adopted for Organisational Development as articulated in Paper 6 presented to the Policy and Executive Committee earlier this month.

RECOMMENDATIONS

2. Members are asked to consider this report.

REPORT DETAIL

3. For some considerable time HFRS has worked to a three year planning horizon which was compatible with the medium term financial plan and with IRMP timeframes. This was a reasonable approach particularly bearing in mind the three year cycle of Comprehensive Spending Reviews. It has however become increasingly clear that longer term cultural and structural change was being hampered by this relatively short-term view. CMT have therefore set out to develop a ten year vision which will facilitate the planning and implementation of sustainable change.

4. Until Fire Futures reported in April 2011 it appeared possible that the Government might adopt a prescriptive approach to the provision of Fire and Rescue Services and this would have limited the scope for HFRS to set its own direction. Equally, discussions with neighbouring FRSs about the possibility of merger or shared management teams would also have influenced our future direction. Now that these matters are being resolved the time is right to develop a longer term vision for the Service. It is however acknowledged that the vision should be sufficiently clear to enable us to monitor our progress against it whilst being flexible enough to embrace new developments.

5. CMT have spent some time scanning the Fire and Rescue environment and have developed a raw version of a ten year vision which is to be used to stimulate debate throughout the organisation. The vision will develop over time as we engage with members and staff and then consult with wider stakeholder groups. This raw version of the vision can be found at Appendix 1.

6. Staff involvement is being encouraged by the establishment of a Sounding Board which should meet to begin this dialogue in October 2011. The Sounding Board will be asked for their views on the Vision so that CMT can prepare a more refined draft which will come before Members for debate during a Member Day in December 2011.

7. The Vision will be developed to the point where it is fit for purpose reflecting the aspirations and priorities of Members, officers and staff. In this form it will assist the Service to set its direction, establish its priorities and align its limited resources to deliver a tangible outcome. 191 RECOMMENDATIONS RESTATED

8. Members are asked to consider this report.

STRATEGIC PLAN COMPATIBILITY

9. This report concerns the development of a longer term plan.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

10. None arising directly. One of the key factors in developing the Vision will however be the projected financial horizon.

LEGAL IMPLICATIONS

11. None arising directly.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

12. None arising directly.

CORPORATE RISK MANAGEMENT IMPLICATIONS

13. The approach adopted in respect of ROM will feature in the strategic thinking briefly outlined.

HEALTH AND SAFETY IMPLICATIONS

14. None arising directly.

COMMUNICATION ACTIONS ARISING

15. As set out in the report.

DETAILS OF CONSULTATION

16. Corporate Management Team.

BACKGROUND PAPERS AVAILABLE FOR ACCESS

17. Policy and Executive Committee Paper 6 September 2011

RECOMMENDATIONS RESTATED

18. Members are asked to consider this report.

R HANNIGAN

Officer Contact: Richard Hannigan  01482 567417 Chief Fire Officer & Chief Executive

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

RH/EML 13 September 2011

192 Appendix 1

Humberside Fire and Rescue Service 10 Year Vision (Raw Version)

Having worked through options for merger and shared management teams Humberside Fire and Rescue Service is now free to establish its Vision for the next ten years. With reduced prescription from central government HFRS can go forward with reasonable confidence whilst accepting that constraints will be imposed by financial pressures.

The “raw version” of the Service Vision was developed by CMT to stimulate debate amongst elected members and staff. Whilst Members will receive a more refined version in December their comments at this early stage would be most welcome.

HFRS 10 Year Vision

Providing an excellent emergency service to our communities will be our priority and this will be founded on three principles:

Basic Principles

Effective The best way we can be, meets community expectations.

Safe Operational staff must be safe in an uncontrolled environment, help community to be safe.

Value for Money In everything we do. Absolute duty. Transparent

Our Role

Prepare (New)  Leaders in civil resilience  Leaders in emergency planning  Help communities prepare for emergency  Help industry plan for emergency  Help commerce with fire risk assessment  Provide emergency rescue and firefighting services to industry on site (contract/income generation).

Prevent (existing)  Use information to focus activity  Use social profiling/marketing  Integrated with other services  Health improvement  Home security/reduce anti‐social behaviour.

193 Protect (existing)  Educate industry and commerce  Consistent approach  Robust enforcement  Integration with Environmental Health, HSE, Licensing.

Respond (existing)  Better trained  Effective teams  Multi‐skilled  Flexible responses  Innovative vehicles and equipment  Medical response  Inshore/coastal rescue/underwater rescue.

Recover (new)  Help people/commerce recover from emergencies  Help with rehousing  Repair fire damaged homes (insurance pays)  Clear roads after RTC  Provide counselling service  Promote learning from experience.

New Ways of Working

 Flexible rostering for all  Different shift patterns at different locations  WDS and RDS spend more time at work to train and gather information – better rewarded  Support staff work flexibly to support 24/7 service  Support staff provide operational resilience  Break down barriers between support staff/RDS/WDS/FDS.

Culture

 Values based  Outward looking, unselfish – here for the community  Activity engaged – staff know why they are here and what is expected – they want to be a part of this  No glass ceiling or artificial barriers  Mutual respect  This is a “can do” organisation.

194 Agenda Item No. 14

Humberside Fire Authority Report by the Deputy Chief 27 September 2011 Officer/Director of Operations

BUSINESS CONTINUITY – OPERATIONAL RESILIENCE FOR STAFF SHORTAGES

SUMMARY

1. The risk relating to the ability of the Authority to maintain its statutory duties during a period of widespread staff shortage has been recognised for some time and features on the Services Risk Register. The most challenging staff shortage would be one arising from industrial action by operational staff. The likelihood of industrial action during the late Autumn has increased recently following the Trade Union Congress, with the announcement for moves for industrial action to take place on the 30 November 2011.

2. This report provides an update on the work which has been undertaken so far to mitigate that risk, and the next steps which are planned to be taken.

RECOMMENDATIONS

3. Members take assurance from the work being undertaken

REPORT DETAIL

4. Previous Business Continuity Plans for staff shortages relied on the existing Resilience Cadre; operational staff who are not watch based but maintain their operational competence, to provide cover when needed. However, whilst that approach may be suitable for shortages caused by reasons such as pandemic flu, the fact that approximately 75% of the 90 staff on original Resilience Cadre were FBU members means that they may be of limited availability during a period of industrial action.

5. Members may be aware that plans led by a previous Deputy Chief Fire Officer to supplement the arrangements by introducing Community volunteers were not successful and that project was terminated

6. With that in mind, on 27 September 2010 SMT approved further research into operational resilience and a report was submitted to HFA on 19 April 2011.

7. Members who attended the development day in Grimsby on 22 November 2010 were given a verbal update on early plans to enhance the existing arrangements.

8. The plans are based around the concept of the Service developing a menu of options to be used as necessary to provide maximum flexibility and minimise the reliance on one particular option.

9. Since SMT approval there has been a significant amount of work in this area, some of which has already resulted in improvements to the current arrangements and some of which is still ongoing.

10. The following is a summary of each option which has been considered and the status of that option.

195 Enhanced arrangements for the existing Resilience Cadre

11. During the first quarter of 2011 operational update training program was re-launched and delivered to 45 operational day duty & FDS staff who agreed to support the resilience Cadre. The Service is currently working towards ensuring a state of operational preparedness for all operational staff, which should negate the need for specific resilience training courses. It is worth noting that a large percentage these staff are FBU members who will provide significant support during any staff shortages not relating to industrial action only.

Preplans for maintaining a cadre of appliance drivers

12. Driver Training Section has, over recent months provided 14 FDS Officers who hold an LGV license with refresher training in Emergency Fire Appliance Driving. The plan is to increase this number to 20 trained drivers.

Arrangements with industrial sites

13. The Service has established arrangements with Total and Phillips Conoco for a response to be provided from their works firefighting teams to incidents involving the following key assets:

 Total Lindsey Oil Refinery  ConocoPhillips Humber Oil Refinery and associated administration and maintenance buildings  Common Pumping Station (Humber Rd)  Killingholme Road Loading KRL  Immingham Oil Terminal APT  South Killingholme Jetty  Killingholme Gas Caverns  Killingholme Gas Jetty  CoP Immingham Pipeline & Propylene Storage Centre (IPPS)  CoP Coke Silos  CoP Combined Heat & Power (ICHP) Rosper Rd  Jet Filling Station, Humber road  CoP Tetney Oil Terminal (Lincolnshire Fire & Rescue)  CoP Theddlethorpe Gas Terminal (Lincolnshire Fire & Rescue)  A180 from Barnetby Top – Pyewipe Roundabout + both access roads from refinery to A180. (Road Tanker Fires only).  Cray Valley Polymers  Simon Storage East  Simon Storage West

Arrangements with Humberside Airport

14. Airport fire fighting teams already respond to Road Traffic Collisions in the immediate vicinity of the airport and their staff are trained for domestic firefighting as well as for aviation incidents. Their arrangements with the Civil Aviation Authority also allow for a response to aircraft incidents within five miles of the airport. Discussions have taken place involving Manchester Airport Group (MAG, the owners of Humberside Airport) via Humberside Airport managers are formally considering a range of options put forward by HFRS:

Option1. In the event of a severe staff shortage Humberside Airport will supplement HFRS resilience cadre with off duty airport fire fighters on a voluntary basis. These staff being temporarily employed by HFRS for the duration of covers being undertaken. These staff will be deployed through out HFRS area and utilise HFRS fire appliances and assets. Any ‘lead in’ familiarisation training costs will be met by HFRS.

196

Option 2. In the event of severe staff shortage HFRS will supply, on loan, a fully equipped domestic fire appliance to be housed at Humberside Airport Fire Station. This appliance will be crewed by off duty airport fire fighters on a voluntary basis. These staff will effectively be temporarily employed by HFRS for the duration of cover being undertaken. Any lead up familiarisation training costs will be met by HFRS. This crewed resource will be available to be mobilised within HRFS area from Humberside Airport fire station on a nearest appliance basis.

Option 3. In the event of severe staff shortage HFRS will supply, on loan, a fully equipped domestic fire appliance to be housed at Humberside Airport Fire Station. This appliance will be crewed by off duty airport fire fighters on a voluntary basis. These staff will effectively be temporarily employed by HFRS for the duration of cover being undertaken. Any lead up familiarisation training costs will be met by HFRS. This crewed resource will be available from Humberside Airport fire station to be mobilised within an agreed response area of Humberside Airport.

Option 4. In the event of severe staff shortage to HFRS, Humberside Airport mobilise resources where suitable within an agreed response area of Humberside Airport. This response area will extend beyond the current arrangements.

Option 5. In the event of severe staff shortage to HFRS, Humberside Airport will only mobilise their resources in line with their current normal mode of operations. A further meeting between HFRS and Humberside Airport staff is due to take place in early September 2011 to finalise the proposed options. A further update will be given to Members when agreement is reached.

Arrangements with the Defence School of Transport (DST), Leconfield

15. DST employs over 500 LGV driving instructors, some of whom have previously worked within the emergency service environment. The availability of qualified drivers to drive appliances and pump operate would reduce the number of actual fire fighters required. Despite a formal request from HFRS to DST to allow an approach to be made to their staff to assist, during their off duty periods was made via Lt Col Graham Whitmore. The response is that DST Leconfield are not enthusiastic about the proposal due to the pressure they are under to deliver trained drivers for operations and the negative impact of any association with assisting in breaking industrial action will have. A similar proposal was pursued to approach the Territorial Army to train their off duty staff to support the resilience cadre in fire fighting activities. This again has met with a similar response as that from DST that they are not able to assist due to other priorities and operational commitments.

The use of HFRS non operational staff

16. HFRS non operational (support) staff already provides key support to operational incidents, some are trained LGV drivers and some administrative staff are trained to provide decision logging in multi agency command situations. All non operational staff were written to, in order to gauge their appetite for further training to provide enhanced operational capabilities. Examples such as LGV drivers becoming trained pump operators would greatly enhance Service resilience, particularly if they were prepared to work during periods of industrial action. Of the 253 support staff, 141 replied, all of these staff have had one to one interviews with a member of the Services resilience team to document the level of support that each member of staff is able to provide. Of these 141, 64 (only 3 with union allegiance) are considered suitable and stated that they were willing to be available for operational duty (subject to training/fitness assessments) & specifically during period of staff shortages due to strike action. 13 of these 64 hold a LGV license. A further letter has been sent to the 112 staff who did not reply initially, to give them a further opportunity to assist.

197 The deployment of RDS staff

17. Some RDS stations have significant numbers of non FBU members. In the case of any industrial action being planned those individuals would be contacted to encourage them to take a paid role at other stations during the industrial action to spread suitably trained staff across the Service.

Arrangements with Continental FRS

18. Initial discussions have taken place with the FRS that serves the Rotterdam area to gauge whether it would be possible to enter into a reciprocal arrangement to provide fire cover to one another when needed. Rotterdam was chosen as the potential exists to transport a crew, and a fire appliance that the crew are trained on, by P&O ferries. Initial discussions have been positive and a further meeting will take place in Humberside with Rotterdam Fire Officer in October/November 2011 to discuss further issues and any associated risks, however timescales mean it is unlikely to be in place by autumn 2011.

Arrangements with a private provider

19. Clearly if there was a decision to take on a private company to provide fire cover during industrial action there would be a tendering process. The ability for such cover to be provided during a national strike may not be feasible. Additionally, indications are that the cost for providing 14 pumps would be in excess of £1.5 million for a five year contract to merely ensure their availability, and then the cost would be in excess of £120k per 24 hour period. This option is no longer being pursued.

BTEC

20. HFRS has contact with past students who achieved a BTEC Fire Service in the Community qualification. Of the 25 ex BETEC students considered suitable, only 11 will be over the age of 18 on 30th November 2011. These young people have already received some training with Fire Service ladders, hose work and pump operation and there is potential in them being employed on temporary contracts during strike periods as part of the resilience cadre. Further work is required to gauge the willingness and availability of these members.

Community Support

21. A plan to approach Parish Councils with a view to HFRS transferring fire appliance assets which would have otherwise gone to auction to Parish Councils, and HFRS training volunteers in the Parish as pump operators. This would have a number of benefits such as increasing community engagement, providing enhanced pumping capability in areas susceptible to flooding as well as creating partially trained people who may be available to receive further training to work during periods of industrial action. This item is being advanced through arrangements with enhanced flood plans; however it is unlikely training could be completed by autumn 2011. However any end of service appliances will remain within the Service and will not be disposed off, pending the outcome of this part of the planning.

Control support

22. An agreement in principle has been made with Humberside Police around utilising Police Control Rooms, with support from HFRS staff, to take emergency calls during industrial action by Control staff. There are currently 15 non union staff with Control room background. Additionally following non ops staff interviews, plans are being drawn up as to how other staff can be trained to assist if they have suitable skills, depending on how long that training may take a decision may be made to start that process soon.

198

23. Further Option:

 Direct Employment. Employing staff from outside the organisation to fulfil specific tasks, i.e. LGV drivers to drive appliances.  Retired Fire Fighters/Fire Officers. Over the past 3 years, 87 members of operational staff have retired from service. As part of direct employment, an invite specifically targeting these former employees to return to service for a short fixed term to cover staff shortages is being considered. The range of staff would facilitate fire fighting & incident command and control functions. Draft job descriptions are currently being drawn up in preparation.

24. Resilience Contracts. Some Fire & Rescue Services have invested in resilience contracts with some of their operation staff. This may prove effective in securing a level of fire cover during industrial action but at also has draw backs such as additional annual cost, no guarantee of support when required; this might be through individuals withdrawing from the arrangement or through the individuals booking sick during period of need.

25. It is acknowledged that none of the options highlighted can provide a solution to a serious staffing shortage in their own right. However, a combination of those options may mean that we would be able to provide as close to the target of 14 pumps available across the Service area as possible. 14 pumps is the level at which the first pump attendance standard could be met assuming all pumps were available and on key stations.

26. Clearly all of these options have their own risks and significant work is still needed, not least around the legal and HR implications. However, as Fire Authorities have been informed that the military will not be available to provide cover it is vital that some plans are in place to cover the eventuality of industrial action particularly.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

27. Financial implications vary depending on the option but a full financial appraisal will take place before any options are formally agreed. Finances may be required during the planning stage for legal advice or if the option for resilience contracts is implemented.

LEGAL IMPLICATIONS

28. Significant legal implications if Business Continuity is not maintained. However, all of the options being considered also have separate legal implications which must be taken into account.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

29. An EIA will be undertaken for each option if they are progressed further.

RISK MANAGEMENT IMPLICATIONS

30. This report contributes to the mitigation of the Operations Board Risk 251, of the Operations Board Risk Register as it enhances the ability to maintain Business Continuity in the event of a staff shortage.

HEALTH AND SAFETY IMPLICATIONS

31. Health and Safety is paramount and any implications such as using newly trained staff, or staff from another FRS will be considered.

199 COMMUNICATION ACTIONS ARISING

32. This must be kept confidential at present, and it should be noted that the document is marked PROTECT in line with the Governments, and HFRS, information classification scheme.

DETAILS OF CONSULTATION

33. CMT and the Service Resilience Team in conjunction with the organisations named in this report.

BACKGROUND PAPERS AVAILABLE FOR ACCESS

34. None

RECOMMENDATIONS RESTATED

35. Members take assurance from the work being undertaken.

D SANDERS

Officer Contact: Chris Blacksell  01482 567433 Head of Operations

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

CB/LCN 15 September 2011

200

Agenda Item No. 15

Humberside Fire Authority Report by the 27 September 2011 Deputy Chief Officer & Director of Operations

OPERATIONS (INCIDENTS OF SPECIAL INTEREST)

SUMMARY

1. This report outlines details of incidents of special interest for the last quarter. The performance of the Directorate in respect of response standards has been reported to the Audit, Performance and Scrutiny Committee. Members will note an increase in the numbers of reported which relate to water rescue. This is as a result of the investment in training and equipment meaning that more resources are now deployed to water rescue incidents, therefore more of them are above the trigger point for this report which is 5 pumping appliances.

RECOMMENDATION S

2. That Members note the contents of this report as a quarterly update of Incidents of Special Interest and consider whether all water rescues should continue to be reported.

REPORT DETAIL

3. Response

3.1 Performance for the Directorate was reported to Audit, Performance and Scrutiny on 17 June 2011.

3.2 Incidents of Special Interest are included as Appendix 1 to this paper.

STRATEGIC PLAN COMPATIBILITY

4. The activities outlined above all contribute to the delivery of the strategic plan.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

5. None at this time. All activities are met within agreed budgets.

LEGAL IMPLICATIONS

6. None arising from this report

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

7. None arising from this report

CORPORATE RISK MANAGEMENT IMPLICATIONS

8. All managed within the Risk and Opportunity Management process.

201 HEALTH AND SAFETY IMPLICATIONS

9. None.

COMMUNICATION ACTIONS ARISING

10. None at this time.

DETAILS OF CONSULTATION

11. For HFA information and discussion only

BACKGROUND PAPERS AVAILABLE FOR ACCESS

12. Appendices attached to this report: Appendix 1 – Incidents of Special Interest

RECOMMENDATIONS RESTATED

13. That Members note the contents of this report as a quarterly update of Incidents of Special Interest and consider whether all water rescues should be continued to be reported. .

D SANDERS

Officer Contact: Area Manager Chris Blacksell  01482 567433 Head of Operations

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull HU4 7BB

CB 15 September 2011

202 Appendix 1 INCIDENT: Special Service – Water Rescue of 15 people Barge stranded in the River Hull

DATE AND TIME: 15:59 hours 12 May 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 3 Pumping Appliances Technical Rescue Unit

ADDITIONAL APPLIANCE MOBILISED: 1 Pumping Appliance

METHOD OF EXTINCTION: Not Applicable

NUMBER OF PERSONNEL ATTENDING: 5,5,5,4 and 2 FDS = 21

NUMBER OF BREATHING APPARATUS SETS USED: None

TIME INCIDENT UNDER CONTROL: 17:11 hours 12 May 2011

TIME OF RETURN OF LAST APPLIANCE: 18:27 hours 12 May 2011

SMOKE ALARM: Not applicable

SUMMARY:

The Service was called to a barge which had lost power, become stuck and was in danger of breaking in two. 11 female passengers between the ages of 65 and 80 were on board along with 4 crew members. One crew member had sustained suspected broken ribs whilst trying to free a mooring rope entangled around the propeller.

Initial attempts were made to prevent the barge breaking in two; this was achieved by utilising nearby farm machinery to pull the stern of the barge out of the direction of the current. The vessels mooring ropes and fire service lines were used to pull the vessel as close to the bank as possible and secure it in position. Fire Service personnel wearing water rescue equipment were positioned down river to provide intervention should anyone fall into the river. The team also utilised the rescue boat from the technical rescue unit.

A ladder was bridged onto the vessel from the bank, allowing a fire fighter to carry across paramedic monitoring equipment. Under guidance from the paramedic on the bank, immediate assistance and assessment was given to the injured crew member. A more substantial bridge was created using secured ladders, fire service lines and an inflated rescue path to assist the passengers from the barge. The injured crew member was taken to hospital by ambulance.

203 INCIDENT: Large fire: Carla Sea, Mineral Quay, Immingham Dock Large bulk cargo carrier

DATE AND TIME: 12:37 hours 22 May 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 5 Pumping Appliances Equipment Support Unit Rescue Support Unit

ADDITIONAL APPLIANCE MOBILISED: None

METHOD OF EXTINCTION: 4 Main Jets

NUMBER OF PERSONNEL ATTENDING: 5,4,5,2,2,2,2 and 2 FDS = 24

NUMBER OF BREATHING APPARATUS SETS USED: None

TIME INCIDENT UNDER CONTROL: 15

TIME OF RETURN OF LAST APPLIANCE: 15:43 hours 22 May 2011

SMOKE ALARM: Not fitted

SUMMARY:

On arrival the Officer in Charge was informed that the vessel was a bulk cargo carrier fully laden with 3000 tonnes of animal feed with a fire in the cargo hold. Information was relayed to him that all people were accounted for.

Fire Service personnel liaised with the ship’s crew and utilising a thermal image camera the fire was located in the aft end of the cargo hold. The special appliances and supporting pumps were not required and returned to station. ABP were requested to lift the cargo hatches and begin to remove the affected cargo using a tower crane. Four covering jets were put into place to cove r the hold and extinguish any affected material on the quayside.

Disruption within the dock was kept to a minimum allowing shipping and other activities to function normally.

The cause of the fire was recorded as accidental due to a fault within electrical lighting units.

Damage to the ship was limited to the lighting units and electric wiring.

204 INCIDENT: Fatality: 152 Rosedale Grove, Hull Bungalow. One female aged 88

DATE AND TIME: 11:35 hours 2 June 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 2 Pumping Appliances

ADDITIONAL APPLIANCE MOBILISED: 1 Pumping Appliance

METHOD OF EXTINCTION: Out on Arrival

NUMBER OF PERSONNEL ATTENDING: 5,4,5 and 3 FDS = 17

NUMBER OF BREATHING APPARATUS SETS USED: 2

TIME INCIDENT UNDER CONTROL: 11:57 hours 2 June 2011

TIME OF RETURN OF LAST APPLIANCE: 12:29 hours 2 June 2011

SMOKE ALARM: Fitted and activated

SUMMARY:

Upon arrival two fire fighters wearing BA sets entered the smoke logged property. Search and rescue operations were carried out and a deceased elderly lady was immediately located in the kitchen. The fire which had started in a waste bin had self-extinguished.

The Coroner’s inquest is scheduled for 5 October 2011 and the cause of death is yet to be confirmed.

The cause of the fire was recorded as careless disposal of smoking materials.

The bungalow sustained smoke damage. Direct fire damage was restricted to the kitchen.

205 INCIDENT: Special Service: Water Rescue River Hull, Drypool Bridge, Alfred Gelder Street

DATE AND TIME: 23:56 hours 4 June 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 5 Pumping Appliances Technical Rescue Unit

ADDITIONAL APPLIANCE MOBILISED: None

METHOD OF EXTINCTION: Not Applicable

NUMBER OF PERSONNEL ATTENDING: 5,5,4,2,2 and 1 FDS = 26

NUMBER OF BREATHING APPARATUS SETS USED: None

TIME INCIDENT UNDER CONTROL: 00:15 hours 5 June 2011

TIME OF RETURN OF LAST APPLIANCE: 00:46 hours 5 June 2011

SMOKE ALARM: Not Applicable

SUMMARY:

This incident involved a man falling into the mud banks of the River Hull. It is unclear whether this fall was accidental or intentional.

The River Hull is renowned for strong currents prompting the mobilisation of a large amount of Fire Service resources as a precaution.

Four Fire Service personnel wearing water rescue clothing assisted the man to make his way up from the riverbank utilising a ladder. The man was taken to hospital by ambulance.

There have been a number of similar incidents in this area and the Fire Service is lobbying the Local Authority and other stakeholders to implement preventative measures in this vicinity to minimise the risk to vulnerable people who frequent a nearby hostel and others who walk alongside the unguarded river.

206 INCIDENT: Large Fire: BOC Gases, Hobson Way, Stallingborough, North East Lincolnshire. Stand Alone Industrial Scrubber

DATE AND TIME: 11:19 hours 6 June 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 3 Pumping Appliances

ADDITIONAL APPLIANCE MOBILISED: 2 Pumping Appliances

METHOD OF EXTINCTION: 3 Main Jets 2 Monitor Jets

NUMBER OF PERSONNEL ATTENDING: 5,5,4,4,4 and 5 FDS = 27

NUMBER OF BREATHING APPARATUS SETS USED: 5

TIME INCIDENT UNDER CONTROL: 13:06 hours 6 June 2011

TIME OF RETURN OF LAST APPLIANCE: 14:13 hours 6 June 2011

SMOKE ALARM: Not Applicable

SUMMARY:

On arrival the OIC was faced with a large fire involving an industrial scrubber, situated between other buildings and stored cylinders. Additional appliances were requested.

Information was gathered from on-site experts and an initial plan formulated to utilise ground monitors and hand held jets to fight the fire. This was successful in dealing with the fire in the scrubber; however some small fires had spread to the roofs of surrounding buildings. These were quickly dealt with. Due to the large number of cylinders on site, a thermal image camera was utilised to discount the possibility of further fire spread.

The majority of the damage was restricted to the industrial scrubber.

The cause of the fire was recorded as accidental being attributed to degradation of the lining of a burner and a fault in a gas manifold of the scrubber.

207 INCIDENT: Large Fire: Epworth Fire Station, Tottermire Lane, Epworth Single storey fire station

DATE AND TIME: 0150 hours 8 June 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 2 Pumping Appliances

ADDITIONAL APPLIANCE MOBILISED: 1 Pumping Appliance

METHOD OF EXTINCTION: 2 Main Jets

NUMBER OF PERSONNEL ATTENDING: 6, 5, 5 and 6 FDS Officers = 24

NUMBER OF BREATHING APPARATUS SETS USED: 4

TIME INCIDENT UNDER CONTROL: 0220 hours 8 June 2011

TIME OF RETURN OF LAST APPLIANCE: 0554 hours 8 June 2011

SMOKE ALARM: Yes, activated but did not raise alarm

SUMMARY:

An initial call was received from the occupant of the house next to the fire station. The caller stated that she could see smoke in the vicinity of the fire station. Control mobilised both Epworth and Crowle crews. Upon arrival, the Epworth crew found a severe fire in the appliance room to which they could not gain access. The running call telephone was used to inform Control and request an additional appliance.

An FDS officer and a Fire Investigation Officer were mobilised. The CPU Manager and duty principal officer were informed.

An additional appliance was requested as the fire was spreading into the roof. Just after the Crowle appliance arrived there was an explosion within the appliance room which blew the appliance room front doors onto the apron of the appliances bay, caused by a rapid ignition of all of the flammable gases within the appliance room.

Two breathing apparatus teams were deployed with two main jets and the fire was quickly extinguished. Fire investigation commenced immediately and was escalated to level 3 due to the potential implications of the fire being a fault in the appliance electrical system.

An initial business continuity plan was put in place to provide fire cover to the area and an appliance from Scunthorpe station remained at the scene for the remainder of the morning. Further plans were put in place to provide some temporary accommodation to allow a spare appliance to be put on the run and release the Scunthorpe appliance.

The Business Interruption Management team was convened to meet later that morning and fire investigation continued in conjunction with police scenes of crimes officers for the remainder of the morning.

The cause of the fire was recorded as an electrical fault within the appliance.

208 INCIDENT: Special Service: Water Rescue River Humber near St Andrew’s Quay, Hull

DATE AND TIME: 21:28 hours 10 June 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 5 Pumping Appliances Technical Rescue Unit

ADDITIONAL APPLIANCE MOBILISED: None

METHOD OF EXTINCTION: Not Applicable

NUMBER OF PERSONNEL ATTENDING: 5,5,5,5,2,2 and 2 FDS = 26

NUMBER OF BREATHING APPARATUS SETS USED: None

TIME INCIDENT UNDER CONTROL: 21:48 hours 10 June 2011

TIME OF RETURN OF LAST APPLIANCE: 22:20 hours 10 June 2011

SMOKE ALARM: Not Applicable

SUMMARY:

This incident involved a man who had fallen into the mud banks of the River Humber and was suffering minor injuries.

The Fire Service placed a 10.5 ladder down to the mud and a fire fighter dressed in water rescue PPE, assisted the man out of the mud to safety.

The man was conveyed to hospital by ambulance.

209 INCIDENT: Fatalities: 21 Montrose Street, Dansom Lane, Hull Two storey terraced house. One adult male aged 46 and one adult female aged 46

DATE AND TIME: 06:15 hours 25 June 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 3 Pumping Appliances

ADDITIONAL APPLIANCE MOBILISED: Hazardous Materials Unit

METHOD OF EXTINCTION: 3 Hose Reel Jets 1 Main Jet

NUMBER OF PERSONNEL ATTENDING: 5,5,5,4 and 6 FDS = 25

NUMBER OF BREATHING APPARATUS SETS USED: 8

TIME INCIDENT UNDER CONTROL: 08:35 hours 25 June 2011

TIME OF RETURN OF LAST APPLIANCE: 11:04 hours 25 June 2011

SMOKE ALARM: Not fitted to property

SUMMARY:

Several calls were received by Service Control to a severe house fire; one call came from the occupiers. Fire survival guidance was attempted by the call handler but it was apparent that the situation was already extremely grave. On arrival the first crew located one occupant at the front bedroom window, a Breathing Apparatus team attempted a rescue of this occupant via ladder, using a hose reel to fight the fire externally. At the same time a crew deployed to the rear of the property, which was fully engulfed in flames, and commenced firefighting using a main jet.

Rescue attempts were hampered by the well-developed fire and excessive heat barrier. The fire was brought under control but unfortunately both occupants died at the scene. The severity of the fire and resulting damage was extreme, assisted by the open plan nature of the staircase which had collapsed during the fire. Access to the first floor could only be gained by a rear bedroom window.

The cause of the fire is still under investigation.

The cause of death is pending the Coroner’s hearing on the 19 October 2011.

210 INCIDENT: Large Fire: 31 Blisland Close, Bodmin Road, Hull Two storey terraced house

DATE AND TIME: 00:03 hours 7 July 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 2 Pumping Appliances

ADDITIONAL APPLIANCE MOBILISED: 7 Pumping Appliances Aerial Ladder Platform Command Unit Water Support Unit

METHOD OF EXTINCTION: 2 Hose Reel Jets 4 Main Jets 1 Aerial Water Tower

NUMBER OF PERSONNEL ATTENDING: 5,5,6,4,2,5,5,6,4,2,2,5 and 5 FDS = 56

NUMBER OF BREATHING APPARATUS SETS USED: 10

TIME INCIDENT UNDER CONTROL: 03:08 hours 7 July 2011

TIME OF RETURN OF LAST APPLIANCE: 05:32 hours 7 July 2011

SMOKE ALARM: Not fitted to property

SUMMARY:

On arrival the Officer in Charge found a well-established fire which was spreading to the upper floor of the property extending into the roof space of adjoining properties. Additional appliances were immediately requested and external jets were set to work. It was ascertained that all people in all six houses of the block were accounted for. It was unsafe to commit crews inside the houses so an aerial appliance was requested and set to work externally. Yorkshire Electricity, Gas, Police and Ambulance were in attendance and the street was cordoned off.

The fire had started in the shed at number 31 and spread along the roof spaces of the other 5 houses.

Severe fire damage was sustained to 4 of the properties.

The cause of the fire was recorded as deliberate ignition by persons unknown.

211 INCIDENT: Incident of Special Interest: Chemical Incident Booth Nooking Lane, Wintringham One male aged 44 and one male aged 40

DATE AND TIME: 07:15 hours 8 July 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 3 Pumping Appliances

ADDITIONAL APPLIANCE MOBILISED: 1 Pumping Appliance Hazardous Materials Unit

METHOD OF EXTINCTION: Not Applicable

NUMBER OF PERSONNEL ATTENDING: 6,5,4,5 and 4 FDS = 24

NUMBER OF BREATHING APPARATUS SETS USED: 2

TIME INCIDENT UNDER CONTROL: 11:00 hours 8 July 2011

TIME OF RETURN OF LAST APPLIANCE: 15:54 hours 8 July 2011

SMOKE ALARM: Not Applicable

SUMMARY:

This incident involved a vehicle parked near a riverbank with ‘Hydrogen Cyanide’ signs on the window. The Police had requested the attendance of the Fire Service. On attendance two males were found inside the vehicle with no signs of life. After the Police had taken video and photographic evidence and the area had been assessed by DIM Officers, it was deemed safe for a BA crew to gain entry to the vehicle. Once it was deemed safe to do so the HART paramedic and Police team entered the hazard area and the two men were confirmed deceased.

The Police removed the casualties from the vehicle and the Fire Service ensured the vehicle and a blue container on the back seat were made safe before removal by the Police.

It was established that tile cleaner and pet shampoo had been mixed together to create Hydrogen Sulphide gas.

212 INCIDENT: Fatality: 256 St Ramanos House, Valiant Drive, Hull Flat in multi-storey block One adult male aged 68

DATE AND TIME: 08:49 hours 9 July 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 3 Pumping Appliances

ADDITIONAL APPLIANCE MOBILISED: 4 Pumping Appliances Command Unit

METHOD OF EXTINCTION: 1 Main Jet

NUMBER OF PERSONNEL ATTENDING: 5,4,5,5,6,5,3,2 and 3 FDS = 38

NUMBER OF BREATHING APPARATUS SETS USED: 6

TIME INCIDENT UNDER CONTROL: 09:46 hours 9 July 2011

TIME OF RETURN OF LAST APPLIANCE: 11:42 hours 9 July 2011

SMOKE ALARM: Two fitted, one with vibrating pad which was disconnected. It’s not known if the other activated due to the damage sustained. SUMMARY:

On arrival the Officer in Charge was informed of a fire on the 7th floor; he was told by a resident that a person maybe trapped inside flat 256. Additional appliances were immediately requested.

‘High rise’ procedures were employed and a hose line was laid from the ground up to the 7th floor. 2 BA teams made entry to the 7th floor where they were met by a member of the public who informed them that his brother who was deaf and unable to speak was within flat 256. This man was moved to safety and the crew forced entry to the flat to commence search and rescue operations. Due to the nature of the door and the locking mechanisms, this took some considerable effort. The occupant was immediately found behind the door and was evacuated via a lift to the ground floor. CPR was continuously undertaken whilst moving the casualty and prior to the arrival of paramedics who confirmed that unfortunately the man was deceased. The deceased’s brother who was also deaf was conveyed to hospital for a precautionary check-up.

The fire was quickly dealt with and a full systematic search of all floors undertaken.

Flat 256 was extensively damaged by fire.

The cause of the fire was recorded as accidental being caused by carelessly discarded smoking materials.

The cause of death is currently unknown pending the Coroner’s inquest on 3 November 2011.

213 INCIDENT: Special Service: RTC. Car over cliff, persons trapped Thornwick Bay, North Marine Road, Flamborough

DATE AND TIME: 07:14 hours 13 July 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 3 Pumping Appliances Rescue Support Unit

ADDITIONAL APPLIANCE MOBILISED: 2 Pumping Appliances Technical Rescue Unit

METHOD OF EXTINCTION: Not Applicable

NUMBER OF PERSONNEL ATTENDING: 5,4,2,5,4,3 and 2 FDS = 25

NUMBER OF BREATHING APPARATUS SETS USED: Not Applicable

TIME INCIDENT UNDER CONTROL: 08:41 hours 13 July 2011

TIME OF RETURN OF LAST APPLIANCE: 10:17 hours 13 July 2011

SMOKE ALARM: Not Applicable

SUMMARY:

On arrival the Officer in Charge assessed the access to the vehicle which was located 50 metres from the cliff top on ground which was the result of previous coastal landslip. Additional appliances were immediately requested. Working with the Coastguard, access was made to the scene via a steep descent of approximately 45 degrees.

A female passenger was positioned in the rear of the vehicle which had rolled down the cliff edge coming to rest on all four wheels. The vehicle was stabilised to ensure no risk of further movement. The casualty was extricated using a partial roof fold of the car and was placed on a stretcher before being conveyed to hospital by the RAF search and rescue helicopter.

The incident is still under investigation.

214 INCIDENT: Special Interest: Spate flooding in Goole

DATE AND TIME: 16:45 to 21:45 3 August 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 9 Pumping Appliances High Volume Pump

ADDITIONAL APPLIANCE MOBILISED: None

METHOD OF EXTINCTION: Not Applicable

NUMBER OF PERSONNEL ATTENDING: 5,5,4,4,5,4,4,4,5,2 and 7 FDS = 49

NUMBER OF BREATHING APPARATUS SETS USED: Not Applicable

TIME INCIDENT UNDER CONTROL: 21:45 hours 3 August 2011

TIME OF RETURN OF LAST APPLIANCE: 01:38 hours 4 August 2011

SMOKE ALARM: Not Applicable

SUMMARY:

By 20:45 hours 100 emergency calls reporting flooding, water on electrics or storm damage had been received. Calls were primarily in Goole town with some incidents in outlying villages.

Internal spate condition procedures were implemented to filter and categorise the emergency calls being received, to ensure HFRS resources responded immediately to any life risk incident and as a high priority to elderly or vulnerable residents experiencing flooding. One appliance and crew was held at Goole fire station as a strategic reserve for life risk incidents and general fire cover. Appropriate fire cover was also maintained to the remainder of the Service area throughout the flooding event.

Fire and rescue service incident management was coordinated from the Major Incident Room within Service Control, having particular regard for potential escalation of flooding across the wider Service area.

Seven FDS officers were deployed to the area affected, the officers were mobilised to initially attend and assess flooding calls received to ascertain if fire and rescue service assistance could be provided. Where this was the case a fire engine was mobilised.

A High Volume Pump was deployed to the Attlee Drive area.

A total of nine fire appliances were engaged in pumping water and salvage operations across the Goole and Howden area, including the evacuation of elderly residents from houses in Attlee Drive.

A number of other incidents were also received during the flooding, including: RTC Persons - Crowle RTC Persons - Garrowby Hill Spillage of 300 tonnes of burning coke Tata Steel - Scunthorpe. Dangerous chimney stack – Goole (dealt with by Aerial Rescue Appliance from Scunthorpe)

Goole fire station was affected by the flooding and the main electricity supply isolated, 999 mobilising and station telephony systems were also partially affected. Alternative arrangements were put in place to alert the fire station for incidents and alert Retained crew members overnight. The fire station remained operational throughout the event.

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216 Agenda Item No. 16

Humberside Fire Authority Report by the Assistant Chief 27 September 2011 Officer/Director of Safety and the Secretary/Director of People

‘CHANGING BEHAVIOUR TO SAVE LIVES’ SOCIAL MARKETING PROGRAMME

SUMMARY

1. The first project in the ‘Changing Behaviour to Save Lives’ programme aims to reduce the number of accidental domestic fire deaths by applying a social marketing approach to create positive and sustainable behaviour changes.

2. Social marketing is an insight-led process to influence change in behaviour. There is growing evidence and experience which shows that when social marketing is applied effectively, and in the appropriate context, it can be a powerful tool for achieving tangible, sustainable and measurable impact on behaviours.

3. Across all sectors, the limitations of old style ‘mission and message’ based communications are now being widely acknowledged. Although the pull to ‘communicate at people’ can still be strong, social marketing has become a key driver in helping people to understand what influences behaviour and therefore what can be put in place to create positive and sustainable change.

4. This social marketing approach is something Humberside Fire and Rescue Service should be taking. The Corporate Communication team is working closely with Community Safety and the Organisational Intelligence Unit to introduce this approach to help protect communities within the Humberside area.

5. Following a significant increase in fire deaths over the last two years, a social marketing programme is currently underway that will target residents who fall into the profile group of those who have been dying in fires.

RECOMMENDATIONS

6. Members are asked to consider this report and support the programme.

‘CHANGING BEHAVIOUR TO SAVE LIVES’ PROGRAMME

7. Although not all the fire deaths we have seen in Humberside during the last two years have been the same, the majority of them have had similarities. This has identified a profile of people who are ‘high risk’ and are therefore the focus of the programme. This group of residents are:

 Over 55  Smokers / Heavy Smokers  Living alone  Have an impairment – for example, physical disability or long term illness

8. The Service currently identifies ‘high risk’ postcode areas using Life-Risk Mapping. This data is now over 10 years old and there have been fatal fires in areas which were not highlighted as ‘high risk’.

9. New data has recently been received from the Mosaic Grand Index, which divides the UK population into socioeconomic and lifestyle groups. When this data has been cross-referenced with the Life-Risk Mapping data in a fatal fire area, a significant

217 number of properties have been highlighted as ‘high risk’, which were not previously identified. Therefore, it is likely that these houses would have been missed by teams delivering Home Safety Visits.

10. The Mosaic data provides enough detail to enable profile groups to be segmented down to household level, rather than just to postcode level. This should more accurately identify the addresses of ‘high risk’ residents.

11. This new data is current, with the next update due in August 2012. The data will be refreshed to include the 2011 Census, however the estimate for when all the data will be collated and any changes seen is 2013.

12. A trial has taken place in Market Weighton and Immingham to test the accuracy of the new data. Hexagon teams have visited ‘high risk’ addresses identified by the Mosaic data to confirm that the occupants meet this profile. Appendix 1 features maps of both trial areas and shows the ‘high risk’ post code areas identified by the current Life Risk Mapping tool and the specific households identified as ‘high risk’ by the new Mosaic data. . 13. The data is currently being analysed to check it’s accuracy. If the data proves to be accurate, it will be used to identify households which need a Home Safety Visit, and will be circulated to Community Safety staff and stations Service-wide.

14. Residents who meet the ‘high risk’ profile during the trial have been asked to take part in the programme. Insight work will take place to develop a better understanding of the lives of the profile group in order to establish whether any meaningful interventions can be developed to be delivered by Humberside FRS and what this might look like.

15. In comparison to other methods which have been used to communicate and engage with these groups, there will be a much stronger focus on how to develop effective behavioural interventions, to address the wide range of behavioural challenges faced by the Service trying to keep people safe from fire. The programme will focus on what really influences behaviour and how the Service can work to improve peoples’ lives by helping them achieve and sustain positive behaviours.

16. The first part of the project, to gain an insight into the ‘high risk’ profile group and develop a toolkit, will be delivered by the end of March 2012. The idea behind the toolkit is that it will show staff what they can do to change the behaviour of these residents to assist in preventing fires and ultimately, to stop people dying in fires. This may include a more tailored approach to communicating with this profile group and will depend on the insight work and establishing how these people are influenced. Community Safety staff and operational staff will be trained accordingly to play a more influential role in changing behaviour.

SUCCESS AND EVALUATION

17. The overarching concern and key measure of impact for the project is on what people actually do as a consequence of the intervention – not simply what they might know or value about something. This does not mean that knowledge and attitudes are not important, but rather that the end is clearly seen in terms of what people do – their behaviour – and in particular, finding ways to maintain and sustain positive behaviours over time. Needless to say, this is not something that will be recognised quickly and the change may take some time to see.

18. If the Mosaic data does not prove to be accurate, it will still need to be used in some capacity but it may be a case of refining the methodology following the outcomes of the trial.

218 19. The programme will involve working with other agencies and could potentially result in partners being identified as influencers in achieving the desired behaviour change. An engagement and communication strategy has been prepared and all relevant agencies will be involved from an early stage.

20. There is a risk that agencies who are identified during the programme as being key influences in changing behaviour may not want to be part of the programme or willing to consider the outcomes that could impact upon them.

21. If applied effectively, and in the appropriate context, social marketing can be a powerful tool for achieving tangible and measurable impact on behaviours. It will also be an opportunity to establish this approach within the Service, which is not currently widely used in the fire sector, and potentially lead the way in how we improve the safety of vulnerable people. Improving the level of understanding and application of social marketing is therefore critical if real and measurable impacts on peoples’ behaviours(s) are to be achieved.

22. A paper detailing the outcomes of the Mosaic data trial and an update on the progress of the programme will be taken to the Fire Authority in December.

STRATEGIC PLAN COMPATIBILITY

23. These new ways of engagement will give the Service a better understanding of community needs, creating a more accurate social profile to underpin the Integrated Risk Management Plan 2011-12 and future plans. Resources will be used more efficiently and effectively as a greater impact could be created using fewer resources. The programme may also provide opportunities to integrate more with other services that provide a better chance of influencing long-term behaviour change.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

24. The programme will be funded using a proportion of funding previously secured for improving the safety of elderly vulnerable residents.

LEGAL IMPLICATIONS

25. None arising directly.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

26. An Equality Impact Assessment has been completed and will be reviewed in January 2012. Implications arising are related to levels of understanding of various stakeholder groups. These will be managed through an engagement and communication strategy to educate and raise awareness about the social marketing process and aims of the programme.

CORPORATE RISK MANAGEMENT IMPLICATIONS

27. None arising directly.

HEALTH AND SAFETY IMPLICATIONS

28. None arising directly.

COMMUNICATION ACTIONS ARISING

29. An engagement and communication strategy has been produced for the programme which will establish the programme amongst key stakeholders and increase understanding of the insight relating to this problem and highlight how the problem can be addressed. 219

DETAILS OF CONSULTATION

30. The programme does not currently require any formal consultation.

BACKGROUND PAPERS AVAILABLE FOR ACCESS

31. All detail is outlined in the report.

RECOMMENDATIONS RESTATED

32. Members are asked to consider this report and support the programme.

P JACKSON R GRAHAM

Officer Contact: Laura Andrew  01482 567466 Corporate Communications Manager

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

RG/SJ 19 September 2011

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222 223

224 Agenda Item No. 17

Humberside Fire Authority Report by the 27 September 2011 Secretary/Director of People

CORPORATE RISK/OPPORTUNITY MANAGEMENT

SUMMARY

1. Members will be aware that the Authority’s performance and risk management processes have now been combined in to a single framework.

2. The existing format for risk registers has been refreshed and a new automated approach using the Service’s information portal will be used, which will vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning.

3. Two Corporate level risks/opportunities remain on the Strategic Risk Register. The remainder of risks previously recorded on the former Corporate Risk Register are now managed through the various Boards and feature on their relevant Risk Registers.

4. Members will find attached at Appendix 1, the Strategic Risk Register.

5. The Strategic Risk Register and associated Action Plans can be found at www.humbersidefire.gov.uk under Fire Authority documents and then clicking on ‘Corporate Risk Management’. Members will be able to click between the Action Plan and the Strategic Risk Register. Should Members wish to receive hard copies of some or all of the Plans, then this can be easily arranged.

6. Members are asked to review the Strategic Risk Register and to provide an assurance that Members consider that the Register properly reflects the key issues facing the Authority. In addition, through the Committee structure (particularly the Audit, Performance and Scrutiny Committee), Members should be satisfied that the Action Plans are effective and appropriate steps are being taken to further embed and resource corporate risk management.

7. Members are also asked to use the Strategic Risk Register as a tool to drive (in part) the agenda and discussions at the Fire Authority meetings.

RECOMMENDATIONS

8. Members are asked to consider the Strategic Risk Register and provide an assurance as to progress in the effective use of risk management.

UPDATE

9. Corporate Risk/Opportunity management is received and considered at each meeting of the three Committees of the Fire Authority (Policy and Executive, Audit, Performance and Scrutiny, and Governance and Standards).

10. The Audit, Performance and Scrutiny Committee has a particular role to play in reviewing the effectiveness of risk management. The Audit, Performance and Scrutiny Committee receive all ‘red’ risks detailed on Board level Risk Registers.

11. Members are asked to take a broad assurance from progress in the management of performance and risk. In addition, further assurance can be taken from the role of the Performance & Risk Board and the reporting of Corporate and Board level risks.

225 STRATEGIC PLAN COMPATIBILITY

12. Effective corporate risk management will enable the Authority to better achieve its strategic objectives set out in its Strategic Plan.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATION

13. None arising directly.

LEGAL IMPLICATIONS

14. None arising directly. The processes underpinning corporate risk management provides a more robust means to identify and manage legal and regulatory risks.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

15. None arising directly.

CORPORATE RISK MANAGEMENT IMPLICATIONS

16. None arising directly

HEALTH AND SAFETY IMPLICATIONS

17. None arising directly.

COMMUNICATION ACTIONS ARISING

18. All the Risk Registers are available for all staff to view, including the Srategic Risk Register.

DETAILS OF CONSULTATION

19. None.

BACKGROUND PAPERS AVAILABLE FOR ACCESS

20. Performance & Risk Framework – APS Committee paper – September 2011

RECOMMENDATIONS RESTATED

21. Members are asked to consider the Strategic Risk Register and provide an assurance as to progress in the effective use of risk management.

R GRAHAM

Officer Contact: Phil Jackson  01482 567418 Head of Performance & Risk

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

PJ/APS/ROM 22 August 2011

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